Civil service wage hike, job losses

The Zimbabwe government announced last week it would raise civil servants salaries by up to 90 percent but at the cost of 20,000 jobs.

The pay awards of between 69 to 90 percent would take effect from January to “significantly improve the conditions of service”, acting Public Service and Social Welfare Minister John Nkomo said. But he added the government would also cut the 171,000-strong public service by 20,000 over four months saving an estimated US $79.2 million in its annual wage bill.

The government’s decision has been applauded by employers. “The government realises the civil service is too big and it was getting no return in value for its money,” Josh Nyoka, president of the Employers Confederation of Zimbabwe told IRIN on Tuesday. “We need a leaner more efficient civil service to attract people with potential.”

He also welcomed the government’s plan to privatise parts of the civil service and provide incentives to retrenched workers to form micro businesses. “The challenge for the government is to secure resources to enable them to create jobs,” he said.