No bonus for civil servants- Chinamasa

Civil servants should not expect a bonus till 2018 as the government is moving to reduce its bloated wage bill, Finance minister Patrick Chinamasa has said.

Chinamasa said this while presenting his mid-term fiscal policy review statement in parliament today.

According to Chinamasa, the proposal will translate to savings of around $180 million per annum.

"Mr Speaker Sir, the respective adopted expenditure rationalisation measures are meant to reinforce the supply side measures proposed in this Mid-Year Fiscal Policy Review, sustain the wage bill, while creating scope for financing drought, debt service and other capital and operations programmes.

"These relate to the following: Wage Bill - Reduction of salaries and allowances by 5-20% starting with Deputy Directors to Ministers effective October 2016.

"Foregoing the 2016 and 2017 bonus. The proposal will translate to savings of around US$180 million per annum, which will be channelled to essential expenditures relating to the drought," he said.

However, early last year Chinamasa made a similar proposal only for President Robert Mugabe to overrule him.

The government then struggled to pay the bonuses and only managed to pay them this year on a phased approach.

Chinamasa also proposed taxing of allowances.

"Taxing civil servants allowances with effect from 1 October 2016 using a progressive tax structure. Taxation of civil servants allowances will also bring equity as similar allowances and benefits earned in the private sector are currently taxed. This is subject to engagement with respective Unions".