Staff Reporters
In a significant development for civil servants in Zimbabwe, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, announced today that the US$300 COVID and Cushioning Allowances currently given to all civil servants will be incorporated into their regular salaries.
This move, effective January 2024, will make these allowances part of the pensionable emoluments for civil servants.
"Mr Speaker Sir, as part of the remuneration review process for civil servants, Government will convert the current COVID and cushioning allowances, aggregating to US$300, to be part of the pensionable emoluments across the board, effective January 2024," Minister Ncube stated in his address.
In addition to this, Minister Ncube also announced measures to enhance the purchasing power of civil servants.
The Minister said that the Government will revise the tax-free threshold to ZWL$750,000 per month or ZWL$9,000,000 per annum.
Moreover, the tax bands will be adjusted to end at ZWL$270 million per annum, above which a 40% tax rate will be levied, starting January 1, 2024.
Minister Ncube further stated that the local currency tax-free bonus threshold would be increased from ZWL$500,000 to ZWL$7,500,000, effective November 1, 2023.
Economic analyst, Persistence Gwanyanya commented that the conversion of the allowances to salaries was noteworthy, as it addressed the longstanding concerns among civil servants regarding the potential discontinuation of these allowances.
Again, the response from the civil servant community has been overwhelmingly positive.
Tendai Marima, a High School teacher in Harare, expressed her relief.
"This is a welcome development. It gives us a sense of security and assurance that the USD component will not be discontinued without notice,” said Marima.
Another civil servant, Brian Moyo, said, "The conversion of allowances into a salary is a big step towards improving our livelihoods. It shows that our concerns are being heard."
Grace Chirinda, a Government nurse, also hailed the move, "Incorporating the allowances into our salaries not only benefits us now, but also secures our future through pension. The tax adjustments will further ease our financial burdens."
Meanwhile, the integration of allowances into the salary structure, along with the tax threshold adjustments, is expected to provide a much-needed boost to civil servants' morale and financial stability.
The move is a clear indication of the Government's effort to address the salary plights of its employees, ensuring a more secure and stable economic future for them.
