COMMENT: USD salary will ensure better pensions for  civil servants USD: Image taken from Shutterstock

To cushion its workers from a difficult economic situation, the Government has timeously reviewed their packages.

It has introduced a car import scheme which allows qualifying civil servants to buy personal-use vehicles of their choice. It increases their salaries as and when the situation demands and at the height of the Covid-19 outbreak, introduced a monthly allowance. It was US$75 at first and was later increased to US$300.

Civil servants were happy at the improved purchasing power as the Covid-19 allowance was tax-exempt.  In addition, they could save it up and be able to import vehicles duty-free.

However, their happiness was tempered by the fact that an allowance can be withdrawn anytime.  Also, an allowance does not constitute pensionable income. These are very big weaknesses that made civil servants uncomfortable, thus they lobbied the Governments to incorporate the Covid-19 allowance into their salaries.

The Government responded positively with effect from this month. This means that civil servants have just had a US$300 salary hike.

Zimbabwe Confederation of Public Sector Unions chairperson, Mrs Cecilia Alexander, delighted:

“The conversion of the US$300 allowance to the basic salary is a welcome development. It is a product of the National Joint Negotiating Council (NJNC) engagements. Workers must celebrate this development because it builds on their proper salary as they work for a salary, not an allowance and therefore we are excited as civil servants. An allowance can be withdrawn anytime but now there is no more risk of this happening because it has now become permanent on our pay slip. We need to continue negotiating for an improvement in USD terms.”

Another unionist, Mr Enock Dongo said the move will ensure that civil servants contribute more to their pensions, thus when they retire, they will earn substantial sums.

Even before they retire, we must say, their higher salaries boost their capacity to secure salary-based loans. They are better able to secure mortgages now, to borrow money to buy movable assets and so on.

This means that the conversion of the Covid-19 allowance into salaries will go a long way in securing not only the present of civil servants, but also their future.

In addition, the move pushes civil servants’ wages closer to their demand for a minimum salary of US$540 they used to earn monthly before October 2018.

Considering that we have a listening Government, we have no doubt that  indeed, their wish would be granted sooner than later.

Apart from us having a listening Government, there is clear evidence that the economy is rapidly growing.  A growing economy will give authorities the space they need to improve civil servants’ packages.

The improved salaries will add on to the range of other attractive working conditions that we mentioned earlier — among them the vehicle import scheme, free accommodation and transport that most civil servants enjoy.

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