President Emmerson Mnangagwa’s administration has scrapped annual bonuses for top civil servants after signing performance contracts this year.

The signing of performance contracts according to the latest communications means senior civil servants, including chief directors and directors at government ministries are not entitled to annual  bonuses.

Mnangagwa announced plans to introduce performance contracts in October 2021 during the official opening of the Fourth Session of the Ninth Parliament.

Public Service Commission (PSC) secretary Jonathan Wutawunashe announced the development in a circular sent to Deputy Chief Secretary to the President and Cabinet Martin Rushwaya, Auditor General Mildred Chiri and all permanent secretaries on Monday this week.

“Reference is made to a Public Service Commission Circular dated March 7 2022 on the signing of performance contracts for chief directors and directors, directing that all chief directors, directors and equivalent grades should sign performance contracts.

“Following the successful cascading of performance contracting to chief directors and directors, director levels and above will no longer receive the traditional annual bonuses,” Wutawunashe said.

“In place of these bonuses, senior grades will now receive performance-related awards, with effect from the current (2022) performance appraisal cycle.”

He said the PSC expected that the directors, equivalent grades and above had signed the contracts.

“These contracts will form the basis for the implementation of performance-related awards, upon validation by the Commission,” Wutawunashe said.

“Annual bonuses will be paid to deputy director grades and below,upon submission of duly completed performance appraisal forms.”

Launching the performance contracts, Mnangagwa said this was part of the government’s efforts to put to an end undue contentment as well as mediocre performance and service delivery.

Presiding over the signing of the contracts by chief directors and directors, Chief Secretary to the President and Cabinet Misheck Sibanda said poor performance would not be tolerated following the signing of the contracts.

During the performance-related awards early this year, four permanent secretaries were named as high-fliers in 2021.

However, observers say Mnangagwa should also implement key economic reforms especially on the currency issue as the Zimbabwean dollar continues to lose value against the US dollar.