News / National
Govt freezes salaries
09 Dec 2016 at 05:54hrs | Views
THE Government has frozen an upward review of remuneration, benefits as well as fees and charges increases by public entities with effect from January 1, 2017.
Presenting the 2017 national budget yesterday, Finance and Economic Development Minister Patrick Chinamasa said that the Office of the President and Cabinet was coordinating work towards the development of a consistent remuneration framework for boards and executive management at state enterprises, local authorities, and other public entities.
He said at present the remuneration practices, inclusive of salaries, allowances and other perks, bear no relationship to performance across the different entities.
"In this regard, a freeze on review of all remuneration and benefits is in place with effect from 1 January 2017, pending finalisation of the new Public Sector Remuneration Framework.
"Once the proposed frameworks have been approved, the Office of the President and Cabinet, and the State Enterprises Restructuring Agency will assume the monitoring and evaluation role to ensure effective implementation," said Minister Chinamasa.
In 2014, the Government announced that it had slashed salaries and perks for parastatals bosses to $6 000.
By reducing salaries and perks of State enterprises management, it was envisaged that an estimated $1,2 million would be saved, an amount sufficient enough to pay 3 000 civil servants.
Before the new salary structure, according to Government, the highest paid chief executive officer was former Premier Medical Aid Society boss, Dr Cuthbert Dube, whose total guaranteed pay packet came to $535 499 monthly. This was broken down to $230 000 as basic salary and $305 499 in allowances.
Minister Chinamasa yesterday said in light of the agreed Social Contract already in place and launched by President Mugabe in February 2010, a general freeze on prices, fees and charges by all public sector entities also takes effect next year.
"Any increase in prices will have to be justified, and considered on its merits. This will include charges on water, power, rates, local taxes, environmental requirements, among others," he said.
The minister said this was necessary to allow economic recovery.
In support of economic recovery, the Government has implemented support initiatives such as the Buy Zimbabwe Campaign through Statutory Instrument 64 of 2016, prioritisation of imports in favour of raw materials and intermediate goods as well as capital and equipment.
"Where Cabinet has made specific decisions on the restructuring of a parastatal, all respective responsible ministers will be required to develop implementation plans, with specific set targets.
"Approval of such plans, and monitoring their implementation, will be by the Office of the President and Cabinet," he said.
Presenting the 2017 national budget yesterday, Finance and Economic Development Minister Patrick Chinamasa said that the Office of the President and Cabinet was coordinating work towards the development of a consistent remuneration framework for boards and executive management at state enterprises, local authorities, and other public entities.
He said at present the remuneration practices, inclusive of salaries, allowances and other perks, bear no relationship to performance across the different entities.
"In this regard, a freeze on review of all remuneration and benefits is in place with effect from 1 January 2017, pending finalisation of the new Public Sector Remuneration Framework.
"Once the proposed frameworks have been approved, the Office of the President and Cabinet, and the State Enterprises Restructuring Agency will assume the monitoring and evaluation role to ensure effective implementation," said Minister Chinamasa.
In 2014, the Government announced that it had slashed salaries and perks for parastatals bosses to $6 000.
By reducing salaries and perks of State enterprises management, it was envisaged that an estimated $1,2 million would be saved, an amount sufficient enough to pay 3 000 civil servants.
Minister Chinamasa yesterday said in light of the agreed Social Contract already in place and launched by President Mugabe in February 2010, a general freeze on prices, fees and charges by all public sector entities also takes effect next year.
"Any increase in prices will have to be justified, and considered on its merits. This will include charges on water, power, rates, local taxes, environmental requirements, among others," he said.
The minister said this was necessary to allow economic recovery.
In support of economic recovery, the Government has implemented support initiatives such as the Buy Zimbabwe Campaign through Statutory Instrument 64 of 2016, prioritisation of imports in favour of raw materials and intermediate goods as well as capital and equipment.
"Where Cabinet has made specific decisions on the restructuring of a parastatal, all respective responsible ministers will be required to develop implementation plans, with specific set targets.
"Approval of such plans, and monitoring their implementation, will be by the Office of the President and Cabinet," he said.
Source - chronicle
