News / National
Govt to cut allowances for civil servants
23 Aug 2015 at 12:18hrs | Views
Government is set to cut allowances for its workforce in a cost-cutting move that is expected to see huge income losses for civil servants.
Earnings for most government workers are made up more of allowances than basic pay. The move is designed to create fiscal space for other capital expenditures.
Finance minister Patrick Chinamasa said last month that government would cut the wage bill by half, from 80 to 40% of national budget.
Among other measures, Chinamasa said government would stop carrying the burden of its employees' pension contributions on its own. Government had taken the full responsibility of its workers' pensions in February 2009 because of limited employee benefits.
There are now fears that government will cut allowances received by the civil servants.
Civil servants get transport and housing allowances, among other benefits which augment their low salaries.
Earnings for most government workers are made up more of allowances than basic pay. The move is designed to create fiscal space for other capital expenditures.
Finance minister Patrick Chinamasa said last month that government would cut the wage bill by half, from 80 to 40% of national budget.
Among other measures, Chinamasa said government would stop carrying the burden of its employees' pension contributions on its own. Government had taken the full responsibility of its workers' pensions in February 2009 because of limited employee benefits.
There are now fears that government will cut allowances received by the civil servants.
Civil servants get transport and housing allowances, among other benefits which augment their low salaries.
Source - standard
