Zimbabwe finance minister Mthuli Ncube has come up with a way to reduce expenditure which has outstrip revenue collections. In his maiden 2019 budget he imposed a 5 percent pay cut for President Emmerson Mnangagwa, his deputies and other top level government officials before parliament on Thursday.
He said, “As a first step, government has decided that effective 1 January 2019, a 5% cut on basic salary, be effected for all senior positions from principal directors, permanent secretaries and their equivalents up to deputy Ministers, Ministers and the Presidium.”
The minister added that same will affect parastatal bosses, constitutional commissions, officers in designated posts in State Owned Enterprises (CEOs), executive directors and equivalent grades too.
Ncube further said a standardization exercise for people in Constitutional Commissions would also be undertaken to bring equity and remove disparities.
The treasury boss said government workers will be eligible for bonuses and cut will only be seen in their basic salaries. The bonuses for 2018 will be processed before the year-end.
About the 13th cheque payment the minister said it is an integral component of the Remuneration Framework and government appreciates hard work of its workers and the year 2018 was seen as facing hardships.
Ncube mentioned further, “Traditionally, payment of the 13th cheque is computed as the sum of Basic Salary, Housing and Transport allowances. Previously, the Budget incurred expenditure of around $174.6 million in bonus payment.