Cash strapped Zimbabwean government has announced a $100 pay advance for civil servants in lieu of transport as they wait for June salaries to be paid in a two weeks time.
The Zimbabwe Herald reports that the current transport stipend does not include the Army and Airforce who were paid on Monday. It would also not apply to prison officers who are expected to pick their salaries on Thursday.
According to Public Service, Labour and Social Welfare Minister, Prisca Mupfumira, the amount would be ready to be paid out by Friday after meeting representatives of labour groups.
After deliberations, Government offered to pay $100 as an advance payment by Friday this week to alleviate the problems so that they are able to go to work.
Zimbabwe govt offers to pay civil servants whose pay dates been staggered till to next month $100 for now for transport fare.— Sure Kamhunga (@SureKamhunga) June 28, 2016
‘‘After deliberations, Government offered to pay $100 as an advance payment by Friday this week to alleviate the problems so that they are able to go to work. The workers are going to consult, but we think this is the best position at the moment, what government can afford and we hope to improve in the future subject to the availability of funds,’‘ she said.
According to the new payment plan by the Mugabe-led government in the xake of biting currency crisis, teachers are due to be paid in the first week of July with all other public servants to expect salaries a week later (July 14)
The government according to estimates is paying nearly $200 million monthly in salaries, an amount that is over 80% the amount of revenue collected. A rationalization exercise is underway to cut costs in the civil service to enable the government save $400 million annually.
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Recent reports indicate that the country was experiencing serious shortages of the South African rand and Chinese yuan as the country attempted to shift to those currencies to address the critical shortages of cash, especially the United States dollar.
But the Finance and Economic Development Minister, Patrick Chinamasa, reiterated that the government would maintain a multi-currency regime and not stick to the South African rand as a sole currency.