Govt suspends 2015, 2016 civil service bonuses

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Finance minister Patrick Chinamasa poses for a picture before entering Parliament building to present Zimbabwe's 2014 national budget

GOVERNMENT has suspended civil servants’ performance bonuses for this year and next year as it seeks to tame its ballooning wage bill and create fiscal space.

by PAIDAMOYO MUZULU

Announcing the development in Harare yesterday, Finance minister Patrick Chinamasa said the position would be reviewed in the 2017 National Budget.

Chinamasa said government was still to complete payment of 2014 bonuses, while at the same time struggling to raise the $260 million monthly salary bill.

“Government has decided to suspend bonus payments for the civil servants in 2015 and 2016, and the situation will be reviewed in 2017 in the event that we are able to build enough capacity,” Chinamasa said.

The government had a tax obligation of $172 million in 2014 and still has to pay $13,4 million owed to State universities’ staff.

Chinamasa said the government was “committed to paying all the outstanding bonus obligations” and bemoaned the collapse of the formal economy and the rise of the informal sector that was difficult to tax.

“I would want to clearly state that as government, we would be more comfortable with a situation where revenue growth is driven by an expanding tax base instead of continuously changing the tax policy,” he said.

At its peak, the country had two million workers in formal employment, but the figure has shrunk to a paltry 500 000 in the last decade.

Chinamasa said the suspension of bonus was only but part of the bold measures the government would employ to reduce government recurrent expenditure in addition to staff audit and channelling of more resources to infrastructure development.

“We have been exploring a number of measures to contain recurrent expenditure and channel resources to less capital-intensive and high-impact Public Sector Investment Projects like irrigation schemes and completion of the Tokwe-Mukosi and Gwayi-Shangaan dams that create real jobs,” he said.

The Ministry of Public Service is conducting a new civil service staff audit although the 2010 Ernest and Young (India) audit report has not been made public nor its recommendations implemented.

The report said there were 75 000 people irregularly employed by the government soon after the 2008 general elections.

12 COMMENTS

  1. This is “BHADHI” (bad) news ladies and gentlemen coming from MDC-T government sorry from ZANU PF government. The GOOD news is that bonuses will only be given towards 2018 elections. Civil Servants will also get hefty salary increments towards 2018 general elections

  2. This is a breach of contract by the goverrnment. The bonus is part of the salary of civil servants and government is not free to remove it without any consultation from the workers. Government has clearly crossed the red line on this one, and this ladies and gentlement is a call to action by all sane minded individuals. This government has promised us heaven and earth to get into power and crafted useless economic blue prints like ZIMASSET. Civil servant need to resist this by any means necessary. Salaries and bonuses were paid without fail during the inclusive government days and surely government has not explored all options to rectify the mess that it has put its people. Today its bonus cuts and who know tomorrow it may be salary cuts. This government should not be allowed to take us backwards. They promised us success and success is what we should get. We have for long been abused by these people. Zimbabweans its time to wake up.

  3. Chinamasa sacrificed civil servants in order to keep 75 000 ghost militia workers paid to sit .Everything is strategic here poor civil servants will get paltry increments in 2018 when Mugabe by then 94 will be Zanu pf presidential candidate.shame shame shame on Zanu pf government .

  4. upto I saw the draft that said $9980 , I be certain that my brothers friend was like they say really receiving money in their spare time on their laptop. . there neighbour haz done this less than a year and as of now cleard the morgage on their appartment and bought Jaguar E-type . blog link…………………w­­w­­w.J­­o­­bsy­­e­­l­­p.c­­o­­m

  5. Bonus repayable just before 2018 ELECTIONS advise all concerned and when Chinhoyi rock diesel pipeline becomes operational.

  6. Noble and bold move, next reduce the size of the cabinet, merge some of the ministries eg Education, Sports and Culture, Lands and Agriculture, do away with some of the ministries such as Psycho Motor ministry and make it a department in the ministry of Education, number of parliamentary and senator seats must be reduced to 150 for the size of our country we have more MPs than other bigger nations than Zimbabwe, Do we really need separate Provincial Ministers or these can be co-opted from existing MPs or Senators? Remove the reported ghost workers off the government payroll. Government must start purchasing vehicles for the army, police etc from local assemblers, tyres from Dunlop, National Tyre services to create employment. All government business trips must be on Air Zimbabwe where possible.
    I am sure the IMF and other International Financial Insitutions, including China will give their thumbs up to Zimbabwe;s government efforts to curb expenditure and eventually offer the Lines of Credit we desperately need and attract investement.

  7. $400 000 for only 12 people and yet its pay that covers over 650 Civil Servants m i missing any thing here our economy seems to be having serious structural problems that needs to be addressed as a matter urgency its not just about retrenching these pple or not paying them bonuses as a way of wanting to boost the fiscal space. It all starts from here we are losing a lot of money thru corruption by these pple. We have companies around looking for amts like anything ranging btween 30000-100000 or them to increase their capacity and increasing employemnt to more than 30 to 60 pple and the gvt is chosing to reward these so called officer for exchanging ponographic materials via intrumuments paid by us the tax payers. Mr Government what is wrong with us.

  8. This Chinamasa, now you see it now you dont game is getting a tad sickening. First he was going to do an audit and get rid of ghosts on the payroll, now this…I bet he is busy preparing a press statement to say he was misquoted..What kind of a guy is this?

  9. a justice guy in charge of a finance potfolio, how nice. its politics but who can they blame for runing down the economy when they are making such silly boobs.Mugabe wake up your house is on fire. what meaning ful contributions can you expect from chinamasa as afr as the ecomony is concerned. honestly

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