“USD$75 allowance will not come in notes form; it will be a purchasing electronic card…”
Yesterday the Government of Zimbabwe awarded its employees a 50% salary hike and a non-taxable USD$70 covid-19 allowance in a bid “…to continuously review and improve the remuneration framework for Civil Servants, taking into account the transitory economic challenges being currently experienced in the country, which have been exacerbated by the Covid-19 pandemic,…” read the full statement below:
However, this move was met with mixed feeling as many believe that it was just a ploy by the government to pacify the tensions within the civil service and others saying the was too broke to pay 500 000 employees in foreign currency for 3 consecutive months as it would amount to USD$150million.
George Charamba the Presidential spokesperson clarified the whole situation confirming that Civil servants will not get hard cash in USD but instead will get the equivalent in RGTS shopping vouchers. ON his Twitter account Charamba said:
The USD75 will not come in notes form; it will be a purchasing electronic card to ensure this enhanced buying power …does not feed the WHITE MARKET, and allows money to circulate within the formal monetary system!! So do not expect cash disbursements. Imagine what upward of USD25m monthly cash disbursement would do to the WHITE MARKET!!! he said.
This angered nurses who have since downed tools in protest.
Charamba went on to say that after 3 months the government will then review its position through a ‘…major financial pronouncement by Government…’:
I should have added that the three months-Covid-19 related income adjustment takes us to the next major Financial Pronouncement by Govt, in which case there will not be a hiatus or discontinuity in income.