Mixed feelings over Covid-19 allowance measure

TANATSWA KANDENGA

 

Civil servants  have expressed mixed feelings to the government’s decision  to convert  the Covid-19  and cushioning  allowances to pensionable emoluments, Business Times can report.

Professor Mthuli Ncube, the minister of finance, economic development, and investment promotion, announced last week that the US$300 in Covid-19 allowances as part of all pensionable emoluments starting in January 2024. This means that the allowances will be taxable, lowering the disposable income of civil servants.

Obert Masaraure, the president of the Amalgamated Rural Teachers Union of Zimbabwe, said that the civil servant’s meagre US$300 allowance shouldn’t be subject to taxes.

‘‘Most unfortunate thing is that if we do not do enough advocacy the US$300 is going to be taxed and the salary amount is going to be reduced. Our task as board at the moment is to push so that the US$300 shouldn’t be taxed and also to get the amount increased,’’ Obert Masaraure  told Business Times.

However, the secretary of the Zimbabwe Confederation of Public sector Trade Unions, formerly the Apex Council,David Dzatsunga  said they asked the employer to make it pensionable salary.

As a result, they had no complaints.

“We requested the employer that the US$300 be a pensionable salary. So, we have no complaints,”  said.

The Zimbabwe Teachers’ Association CEO, Sifiso Ndlovu also welcomed the government’s decision.

“The Minister (professor Mthuli Ncube) has reviewed the salaries by converting Covid-19 allowance to a pensionable salary and that is what we had recommended. That is very welcome but the quantum must be reviewed upwards because US$300 is below what we have been lobbying for, which is US$800.’’

Progressive Teachers Union of Zimbabwe president Takavafira Zhou concurred:  “The (move) will go a long way in alleviating the pensioners.”

He, however,  said the quantum was not so much.

 

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