Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu has assured the public that bonus payments to civil servants and other stakeholders will not affect price stability or the exchange rate as the festive season approaches.
In an interview with <a href="https://www.sundaymail.co.zw/bonus-payments-wont-affect-prices">The Sunday Mail</a>, Mushayavanhu said the government has structured bonus payments in both US dollars and Zimbabwe Gold (ZiG), with the larger portion being paid in hard currency.
He said this approach should help limit any potential impact on the exchange rate. Added Mushayavanhu:
<blockquote>
Furthermore, the Government has already budgeted for civil service bonuses, which are accommodated within Government revenues, implying no significant impact on exchange rates and prices.
Consequently, the Government is expecting substantial revenue inflows from the fourth quarter quarterly payment dates (QPDs).
In addition, the country experiences an increase in diaspora remittances as diasporans return home for the holidays. As a result, the net effect on exchange rate and prices is likely to be minimal.
</blockquote>
Mushayavanhu said the recent policy measures aimed at addressing tight liquidity conditions have successfully reduced excess liquidity in the market and curbed speculative demand for foreign currency.
As a result, both the official and parallel market exchange rates have stabilised, with the premium between the two markets narrowing significantly. Said the central bank Governor:
<blockquote>
The measures included increasing the bank policy rate from 20 per cent to 35 per cent, raising statutory reserves to 30 per cent and enhancing the flexibility of the exchange rate on the foreign exchange interbank market.
In addition, the increased flexibility in the willing-buyer, willing-seller interbank foreign exchange market has led to a positive response in foreign currency supply.
This has measurably contributed to currency and price stability in the economy. The Reserve Bank’s tight monetary policy stance will continue to have a positive impact and result in further narrowing.
</blockquote>
The central bank chief said the country’s total reserves, including gold, are currently valued at approximately US$540 million, which is more than three times the reserve money, which stands at about ZiG4 billion (equivalent to US$155 million). This provides a solid reserve cover.
The total foreign reserves of US$540 million (ZiG14 billion) now exceed the total deposits in the banking sector, which are approximately ZiG12 billion (equivalent to US$467 million), Mushayavanhu added.
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The Reserve Bank of Zimbabwe says giving bonuses to civil servants won't make prices go up or change the exchange rate. The government is paying bonuses in US dollars and Zimbabwe Gold to limit the impact. They already have money for bonuses, so it won't affect prices or exchange rates much. The bank made rules to control the amount of money in the market, stabilize exchange rates, and help the economy. Zimbabwe has a lot of reserves compared to what they owe, which is good for the country. This should keep things stable and make things better for everyone.

Bonus Payments To Civil Servants Won’t Lead to Inflation Or Affect Exchange Rate - Mushayavanhu

Singapore’s Public Service Division (PSD) on Monday, November 25, announced that civil servants will receive 1.05 months of year-end bonus.
According to <a href="https://www.straitstimes.com/singapore/civil-servants-to-get-1-05-months-year-end-bonus-junior-grade-officers-to-get-additional-600">The Straits Times</a>, junior officers in grades equivalent to Management Executive (MX)15 and MX16, and those in the Operations Support Scheme, will get an additional one-time payment of $600.
Including the mid-year bonus of 0.45 months, civil servants will receive a total of 1.5 months of bonus in 2024, up from 0.9 months in 2023.
Junior grade officers also received up to $250 in additional payment in June, totalling up to $850 in 2024.
The PSD stated that the bonus payment approach aligns with the National Wages Council’s recommendation to uplift lower-wage workers’ salaries.
The year-end payment reflects Singapore’s better-than-expected economic performance in the first three quarters of the year and current global and domestic economic situations.
Singapore’s GDP growth forecast for 2024 has been raised to around 3.5 per cent.
The Ministry of Manpower’s preliminary labour market data showed total employment grew by 24,100 in the July to September period.
Amalgamated Union of Public Employees general secretary Sanjeev Kumar Tiwari said “it is important that when our economy does well, our civil servants who have contributed to this success are rewarded accordingly”.
The additional one-time payout will help junior officers manage the rising cost of living.
NTUC and public sector unions support the payout decision, with deputy secretary-general Cham Hui Fong encouraging upskilling programmes for civil servants.
The Government will continue to pay the one-month non-pensionable annual allowance (13th month bonus) to all civil servants.
According to the official website of the Public Service Division (PSD), civil servants are part of the Singapore Public Service, which includes approximately 86,000 officers across various ministries.
These officers serve in a range of service schemes, such as the Administrative Service, Legal Service, Education Service, Police Service, Civil Defence Service, and Accounting Service, among others.
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Singapore's Civil Servants will get a bigger bonus in 2024 – 1.05 months at the end of the year and $600 one-time payment for some junior officers. This is up from 0.9 months in 2023. Junior officers also got up to $250 in June. The bonus aligns with helping lower-wage workers. Singapore's economy is doing well, so the bonus is to reward civil servants for their work. NTUC and unions support the decision. The Government will also continue to pay the one-month bonus to all civil servants.

Singapore's Civil Servants To Receive Higher Bonuses In 2024

Zimbabwe’s civil servants have begun receiving their annual bonuses, which will be paid in instalments over November and December.
Permanent Secretary Simon Masanga confirmed this in an interview with <a href="https://www.herald.co.zw/civil-servants-start-receiving-annual-bonuses/">The Herald on Sunday</a>. He said:
<blockquote>
We agreed that bonuses were going to be spread over two months, that was the initial plan that we made and agreed upon.
</blockquote>
Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU) president Cecelia Alexander confirmed in a separate interview that civil servants have started receiving their bonuses. She said:
<blockquote>
Yes, civil servants have started receiving their bonuses, members of the uniformed forces were the first to receive and we are expecting teachers to start receiving their portion this week.
We are happy with what Government has done because they did what they said they would do during the National Joint Negotiating Council meeting.
</blockquote>
Last week, ZCPSTU told the Chronicle that the security and health sectors had started receiving part of their annual bonus. Said Dzatsunga:
<blockquote>
Yes, civil servants started receiving their bonuses, the 50 per cent as mentioned by the Government.
Uniformed forces got theirs today (Friday) and the next will be education and the last will be the rest of the civil servants.
We appreciate that civil servants got their bonuses but there is a lot that needs to be done to improve their welfare.
Come next year we will continue to engage the Government so that we get to US$840 that we want.
</blockquote>
This month, civil servants will receive 50% of their bonus, paid alongside their November salaries, with the remainder to be paid in December.
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Zimbabwe civil servants are getting their yearly bonuses split up into two parts, in November and December. Soldiers got theirs first, followed by teachers. The government promised this during negotiations. Half of the bonus will be given this month, with the other half in December. The unions say more needs to be done to help civil servants, and they will keep talking to the government about it.

Zimbabwe Civil Servants Start Receiving Annual Bonuses

The Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ) has welcomed the government’s decision to release annual bonuses for public sector workers in two instalments.
However, the union believes this gesture does not adequately address the ongoing economic hardships that teachers and civil servants are experiencing.
In a statement issued on November 5, ARTUZ said rising inflation and the increasing cost of living have eroded teachers’ purchasing power.
They stressed that recent salary adjustments and promised bonuses are insufficient to meet the challenges faced by educators. ARTUZ said:
<blockquote>
Staggering the payments may help ease strain on banking systems, but it does little to resolve the immediate and pressing challenges experienced by our members.
Teachers face unique struggles, including low and inconsistent salaries, poor working conditions, and limited access to essential services.
The announced salary adjustment, though an effort to offset devaluation, has not been sufficient to safeguard teachers’ purchasing power amid relentless inflation and rising costs of living.
The piecemeal approach to addressing the needs of public servants, particularly those in rural education, highlights a persistent issue of undervaluation of teachers’ contributions to national development.
ARTUZ remains committed to advocating for meaningful reforms that truly reflect the hard work and dedication of Zimbabwe’s teachers, who are integral to the nation’s future.
</blockquote>
The union urged the government to focus on sustainable solutions that provide fair compensation, timely payment, and improved working conditions for all public sector workers.
ARTUZ is committed to tirelessly advocating for the fair treatment of teachers and the provision of quality education in rural Zimbabwe.
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The ARTUZ union is happy that the government will give bonuses to teachers. But, they say the bonuses are not enough to help with the problems teachers face. The union thinks that teachers need more money to buy things because of inflation. They want the government to pay teachers better and on time. They want to make sure teachers have good working conditions and can get the services they need. The union will keep working to make sure teachers are treated fairly and get a good education in rural areas.

ARTUZ Welcomes Civil Servants' Bonus Announcement, Pleads For Fair Compensation

Zimbabwe’s civil servants will receive their 2024 annual bonuses in staggered payments. The first instalment, amounting to 50 per cent of the total bonus, will be paid alongside November salaries, while the remainder will be disbursed in December.
The payment process will begin with workers in the security services, followed by those in the health sector, education, and the rest of the civil service.
As in 2023, traditional leaders and their messengers will also receive annual bonuses.
In an interview with <a href="https://www.sundaymail.co.zw/staggered-bonuses-for-civil-servants">The Sunday Mail</a>, Cecilia Alexander, chairperson of the Zimbabwe Confederation of Public Sector Trade Unions, confirmed that the government has committed to paying the bonuses in instalments. She said:
<blockquote>
According to our agreement with the employer, the bonus will be paid in two instalments.
The first 50 percent will come with the November salary and the remainder will be paid in December.
</blockquote>
The government recently adjusted the local currency portion of civil servants’ salaries, increasing it by the equivalent of US$40 following a 43 per cent devaluation of the ZiG currency by the central bank.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe's civil servants will get their 2024 bonuses in two parts. Half will be paid in November with their salaries, and the rest in December. The first payment will go to security officers, then health, education, and other workers. Traditional leaders will also receive bonuses. The government increased salaries by $40 after devaluing the currency. The chairperson of the trade union confirmed the bonus plan. This means civil servants will get their bonuses in parts instead of all at once.

Zimbabwe Civil Servants' Bonus Payments To Be Made In Instalments

Zimbabwean workers say the bonus euphoria associated with the festive season has gradually dissipated due to years of economic hardships that have pushed the majority of citizens into poverty.
Traditionally, the month of December was famous for bonus payments to civil servants and private sector workers as employers appreciated their hard work throughout the year.
The month of December witnessed massive shopping for groceries, alcoholic beverages and household property such as electric gadgets and furniture as workers enjoyed the 13th cheque.
This has largely become a thing of the past as most families are struggling to put basic foodstuffs on the table.
Zimbabwe Congress of Trade Unions (ZCTU) secretary-general Japhet Moyo told <a href="https://thenewshawks.com/bonus-euphoria-vanishes/">The NewsHawks</a> that the old days of unbridled merrymaking after bonuses are over. Said Moyo:
<blockquote>
The old days of merrymaking are gone because the resources are becoming very scarce.
Not everyone has the thirteenth cheque and for those lucky enough to get it, is not even adequate to push them to January. The thirteenth cheque of nothing is just nothing.
The business community doubled the prices of goods and services to wipe out the little that they had paid out as salaries and bonuses.
</blockquote>
Takavafira Zhou, the Progressive Teachers’ Union of Zimbabwe (PTUZ) president, said:
<blockquote>
The salaries are pathetic. Far less than the PDL (poverty datum line) and workers are living from hand to mouth and scavenging for survival.
Schools have increased school fees for 2024 and many parents are in a dilemma over how they will get such exorbitant amounts ranging between US$500 to US$1 600 for boarding schools between now and January.
The economy is also in shambles and our currency is easily erodible and difficult to guarantee a decent life.
</blockquote>
Zimbabwe Urban Council Workers’ Union (ZUCWU) national secretary-general Kudakwashe Munengiwa said:
<blockquote>
The issue of payment of bonuses for 2023 has become a mirage. It’s meaningless to workers.
The 13th cheque, as the bonus is known, is meant to appreciate workers for the hard work they would have put into their various organisations throughout the ensuing 12 months.
But what we see now in this country is that the payment of this 13th cheque, particularly in the public and private sectors, has become meaningless because it is consumed by accumulating debts.
It is also affected by the prospects of January school fees and various other expenses. So the bonus has become meaningless. So you will see that there was no pomp and fanfare.
What must be done is to restore salaries to the pre-November 2017 figures where civil servants used to earn US$540 while local authority minimum-paid workers got US$400. Unless and until that happens, the 13th cheque will not be the answer.
</blockquote>
Amalgamated Rural Teachers’ Union of Zimbabwe president Obert Masaraure told The NewsHawks that life has been hard for teachers since the November 2017 military coup. He said:
<blockquote>
The Second Republic robbed civil servants of the Christmas cheer. Teachers are saddled with debts and are having sleepless nights planning for 2024 back to school.
The 100% bonus of a depressed income doesn’t give civil servants and other workers enough financial legroom to afford festivities.
The festival season is for the looters who are politically exposed. We call upon the hangman of the workers, Mthuli Ncube, to review salaries upwards, to a minimum of US$1 260 in January 2024.
</blockquote>
In 2023, the Government paid bonuses staggered over two months, but the amounts received were not significant enough for civil servants to splash the cash.
Moreover, most private companies are strugglings and some of them failed to pay December salaries, let alone annual bonuses.
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