ZIMBABWE’s civil servants will now get their bonuses this month as Government climbs down from its initial proposal to spread the payments over two months.
The Government had mulled staggering bonus payments between November and December.
In his 2020 budget statement Finance Minister Professor Mthuli Ncube said bonuses will be inclusive of transport and housing allowances, a variation from the formula in use which is based on basic salary only.
Civil servants who earn at least ZWL$1 023 will have their bonuses untaxed after Treasury proposed a bonus tax free threshold to ZWL $5 000 with effect from November 1.
“Treasury has made arrangements to pay all civil servants their bonuses in November 2019.
“The bonuses are based on a formula that is inclusive of transport and housing allowances, which is a once-off variation to current policy, which base these payments to basic salary only.
“This was designed to bring relief to public servants in light of the erosion of disposable incomes under the current high inflationary environment,” Prof Ncube said.
Government increased civil servants’ salaries by 76 percent in August this year. The least paid worker now earns ZWL$1 023.
Civil servants are pushing for salaries that are pegged against the interbank foreign currency exchange rate.