Major blow for civil servants as
government slashes bonuses for
2016/2017

Civil servants should not expect a bonus till
2018 as the government is moving to reduce
its bloated wage bill, Finance minister
Patrick Chinamasa has said.
Chinamasa said this while presenting his mid-
term fiscal policy review statement in
parliament today.
According to Chinamasa, the proposal will
translate to savings of around $180 million
per annum.
“Mr Speaker Sir, the respective adopted
expenditure rationalisation measures are
meant to reinforce the supply side measures
proposed in this Mid-Year Fiscal Policy
Review, sustain the wage bill, while creating
scope for financing drought, debt service and
other capital and operations programmes.
“These relate to the following: Wage Bill –
Reduction of salaries and allowances by
5-20% starting with Deputy Directors to
Ministers effective October 2016.
“Foregoing the 2016 and 2017 bonus. The
proposal will translate to savings of around
US$180 million per annum, which will be
channelled to essential expenditures relating
to the drought,” he said.
However, early last year Chinamasa made a
similar proposal only for President Robert
Mugabe to overrule him.
The government then struggled to pay the
bonuses and only managed to pay them this
year on a phased approach.
Chinamasa also proposed taxing of
allowances.
“Taxing civil servants allowances with effect
from 1 October 2016 using a progressive tax
structure. Taxation of civil servants
allowances will also bring equity as similar
allowances and benefits earned in the
private sector are currently taxed. This is
subject to engagement with respective
Unions”.
Source – Byo24News