Zimbabwe: The Civil servants of Zimbabwe will receive the old US $300 COVID-19 allowances as part of their permanent pensionable salary. The first batch of workers have been receiving the allowance from Jan 12, 2024. The batch also includes uniformed forces and health workers.
The workers appreciated the initiative and said that they could now easily access loans, unlike when the money was paid as allowances. Now, the funds will be pensionable, which will make life easier for retirees, and workers’ morale will be boosted as they will receive a salary, unlike when the money was paid as allowances, which had a risk of being removed at any time.
As per the sources, the government introduced a US $75 Covid-19 allowance in 2020 and has progressively increased the amount to US $300, and since it was an allowance, it was exempted from tax.
The government sincerely improved the welfare of workers and has appointed a team of 15 members that will negotiate at the National Joint Negotiating Council for two years, with effect from Jan 1, 2024.
The president of the Zimbabwe Nurses Association – Enock Dongo, said that they are expecting to see those allowances as part of the salary, especially for health workers scheduled to be among the first to receive the pay.
Dongo mentioned that it is a welcome development. “We are happy with this move which has been taken by the government as it will make sure it is sustainable and boost the morale and confidence of the workers,” added the president.
He added that allowances can be removed anytime, but a salary cannot be removed, which means that there is trust, hope and confidence that the move is going to bring to the workers, eventually motivating them.
“Allowances were not part of pensionable income; hence, when this money is moved to be part of the salary, it becomes pensionable,” said President Dongo.
Notably, the workers who retired from service after serving a long time were getting peanuts when their pensions were being calculated, especially using the local currency.
Now, the calculation will be done by using the forex component, which means that they are going to get something meaningful that they can take home as an advantage.
Enock Dongo said that it was a welcome move, which really showed that the government has its people at heart. They want to see people having a better living even when they leave public service to go and retire after serving for so long.
Reportedly, civil servants can now borrow from the banks in forex and can do some projects, which is better than before when it was allowances. It was so difficult for somebody to go and borrow forex.
However, President Dongo pleaded that the government should avoid heavily taxing salaries because it would disadvantage civil servants. The new and far wider tax bands that include the zero-rate band mean that most state employees will pay only very modest amounts in tax.
Dongo also said that if it is going to tax, it means that it is going to reduce the amount, which will not be good for the workers. “We also expect the government to increase that salary to a meaningful salary which is competitive in the region. We expect the salary to move gradually towards the US $540, which was given even before Oct 1, 2018,” said the president, Enock Dongo.