SUFFER CONTINUE: As taxes eat into US$300 pay rise for civil servants

Police officers who got paid today have been shocked to discover that the now pensionable US$300 component of their pay is also now taxable.

Taxman took US$34, after Nyaradzo and PSMAS, most are left with RTGS$66,000 from the RTGS$330k ZWL component.

‘It’s nothing,’ one officer told Zimlive.

The government yesterday announced that civil servants will now be receiving the old US$300 Covid-19 allowances as part of their permanent pensionable salary.

The first batches of workers, including uniformed forces and health workers, were expected to start receiving it today.

The Government introduced a US$75 Covid-19 allowance in 2020 and has progressively increased it to US$300, but since it was an allowance, it was exempted from being taxed.

Zimbabwe Nurses Association president Enock Dongo told The Herald that the conversion of their old US$300 COVID-19 allowances to permanent pensionable salaries will boost civil servants’ morale.

Dongo said: “This is a welcome development. We are happy with this move which has been taken by the Government as it will make sure there is sustainability and boost the morale as well as the confidence of the workers.

“Allowances can be removed anytime, but salary cannot be removed willy-nilly so it means that there is trust, hope and confidence that the move is going to bring to the workers eventually motivating them.”

While the announcement brought excitement to others, after getting paid today, government workers have realised that the US$300 is next to nothing after taxes.

Zwnews