Government will now pay US$75 COVID-19 allowances it awarded its employees in local currency equivalent at the prevailing auction rate on the date of the payment with effect from September 2020.
This follows an announced by Treasury that all government departments must come up with requisite salary key scales to facilitate the implementation of the recently announced 40 percent cost of living adjustment for civil servants.
Government recently announced a 40 percent cost-of-living salary adjustment for civil servants to be deposited into the civil servants’ bank accounts starting from October 2 although some workers’ representatives have rejected the offer from the employer.
Civil servants were recently awarded a US$75 a month Covid-19 allowance which was extended beyond its September 2020 expiration date as part of government’s interim steps to help cushion its employees.
In an internal memo gleaned by The Anchor, Finance and Economic Development secretary George Guvamatanga said the adjustments would be made on the entire civil servants’ salary package.
“Government has taken a decision to cushion public workers from negative impacts of changes in the cost of living by awarding an 40% cost of living adjustment on total package (basic salary, transport allowance, housing allowance and representation allowance where applicable) with effect from 1 September 2020 as well as extension of the US$75 COVID-19 allowance from September to December 2020,” he said.
Employees of parliament, independent commissions and grant aided institutions also stand to benefit from the above cost of living adjustment and the US$75 COVID-19 allowance.
“However, please be advised that the COVID-19 allowance of US$75 per month will be paid in the local currency equivalent with effect from September 2020 at the prevailing auction rate on the date of payment,” he said.
Civil servants have rejected the 40 percent cost-of-living-adjustment by government demanding at least US$480, which is roughly $39 000 at the official exchange rate with teachers refusing to attend to classes since schools opened as they claimed incapacitation due to economic challenges they are facing.
The teachers are demanding to be US$580 per month.