The Secretary for Finance and Economic Development, George Guvamatanga, has confirmed the payment of a US$100 monthly cushioning allowance to civil servants with effect from 1 March. State pensioners will receive US$50. In a statement, seen by Pindula News, Guvamatanga said the cushioning allowance is non-taxable. He said in a letter to Ambassador Wutawunashe, Secretary to the Public Service Commission:
RE: REQUEST FOR TREASURY CONCURRENCE FOR THE IMPLEMENTATION OF THE CUSHIONING ALLOWANCE OF US$100 AND US$50 TO MEMBERS OF THE PUBLIC SERVICE AND GOVERNMENT PENSIONERS WITH EFFECT FROM 1 MARCH 2022
Your minute B/C/33/202 dated 1 March 2022 refers.
Treasury notes your proposal that the US$100 and US$50 to Civil Servants and Government Pensioners, respectively, be treated as a Cushioning Allowance which is non-taxable and will be indicated on the salary key scale as a foot note.
Furthermore, Treasury also notes that the US$100 will be payable to all Civil Servants from Grades A3 to F including Government funded domestic workers, Aides to visually impaired, student teachers and casual workers.
It is also further noted that the Cushioning Allowance will also benefit members of Independent Commissions, Parliament of Zimbabwe, Auditor General, Zimbabwe National Statistics Agency as well as Grant Aided Institutions.
Accordingly, Treasury concurs to the implementation of the Cushioning Allowance of US$100 to the Civil Service, Security Forces, Independent Commissions, Parliament of Zimbabwe, Auditor General, Zimbabwe National Statistics Agency and Grant Aided Institutions and US$50 to Government Pensioners with effect from 1 March 2022.
This is happening at the backdrop of soaring prices of commodities in shops owing to an increase in fuel prices recently.