Zimbabwe Finance Minister Mthuli Ncube today announced that he is reducing salaries of senior civil servants, ministers and President Emmerson Mnangagwa by 5 percent with effect from January.
He said this was one of the ways to reduce the government’s huge wage bill which is gobbling 90 percent of government expenditure.
“Effective 1 January 2019, government is cutting remuneration by 5% for principal directors’ grades and their equivalents up to ministers and the presidium,” he said in his budget speech for the 2019 financial year which was presented today.
“This is also extended to designated posts in State Owned Enterprises (CEOs, executive directors and equivalent grades) including Constitutional Commissions and grant aided institutions.”
Ncube said the cut in salaries including pension benefits, medical insurance and social security contributions will reduce employment costs from 89.6 percent of total revenues in 2017 to 60.6 percent in 2021.
(367 VIEWS)
