Govt reduces wage bill costs to 53%

By Own Correspondent

JUSTICE Minister Ziyambi Ziyambi says the government has so far reduced its wage bill costs by 53% in line with global best practices.

Zimbabwe has been spending millions of dollars in excess employment costs and recently tabled an aggressive strategy to cut off the wage bill. The wage bill was previously as high as 80% of the budget, but reforms have brought it down to a more manageable level, though it is still considered high.

Speaking in Parliament recently, Ziyambi said considerable progress has been made in reducing the pressures on the wage bill.

“In 2017, around 80% of revenue was going to salaries. Currently, around 53% of revenue is going to salaries and we have been trying to reduce it. We are within the expected standard globally. We are now about to get into that range. In terms of ease of doing business, a lot has been done within the public sector to ensure that we increase efficiency,” he said.

However, the huge strides have come with their own setbacks considering the low salaries currently being paid out to civil servants whose earnings continue to lag behind the Poverty Datum Lines. Civil servants are calling for a significant salary increase, with some unions demanding a restoration of the US$540 their members previously earned.

Unions argue that the current cost of living requires a minimum of US$1,260 for civil servants to afford essential expenses like rent, transport, and school fees.

The policy to halt teacher recruitments has resulted in a deficit of over 25 000 teachers , prompting labour activists to raise accusations that the government remains focused on sustained economic stability at the expense of other considerations.

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