Government Workers Struggle As Funeral Policies And Medical Aid Consume Earnings
Civil servants have said funeral policies and medical aid contributions are taking up a large portion of their earnings, leaving them with little money for essential needs like food, rent, school fees, and transportation. Service providers for medical aid and funeral policies have been increasing their prices to protect themselves from losses caused by inflation and the rapid depreciation of the Zimbabwe dollar.
Civil servants, who recently asked the government to reconsider taxes on their US dollar salary component, are now facing a dire situation. Their COVID-19 allowances were converted into taxable earnings, but the heavy taxation has rendered the money meaningless.
In interviews with NewsDay, civil servants expressed frustration with their employer for failing to alleviate the rising cost of living. The Chairperson of the Zimbabwe Confederation of Public Sector Trade Unions, David Dzatsunga, said that deductions, especially for insurance and debts, are eating into the Zimbabwe dollar component of their salaries. Some workers are receiving figures that are less than their actual salaries after deductions. Dzatsunga was quoted as saying:
The issue is that the RTGS component of our salaries is now getting eaten up by deductions, especially from insurance and debts.
All that is taking up a lot of our RTGS component to the extent that workers are getting figures which are actually minus their salaries after the deductions.
The situation as it stands is very critical and it requires that the employer really moves very quickly to meet up and resolve the situation.
Teachers have accused funeral policy and medical aid companies of deducting substantial amounts from their already meagre wages without consulting them. Some members received notifications of deductions as high as ZWL$500,000 and above, while their Zimbabwe dollar component does not exceed ZWL$900,000. This leaves them with very little money.
Progressive Teachers Union Zimbabweโs president, Takafira Zhou, highlighted that their membersโ earnings are inadequate due to heavy taxation. He called for a basic salary of US$540, housing and transport allowances, and education support. He said:
The current basic salary of US$300 is grossly inadequate considering that it is now taxed and suffers heavy deductions from medical aid and other deductions from teachers as responsible parents.
The best form of investment is in the education of pupils and those entrusted with the nurturing of the youths or pupils must be motivated so that they engineer a skillโs revolution that can foster development, innovation and dynamism so crucial for sustainable development of Zimbabwe.
Civil servants are urging the government to address their salaries and living conditions urgently. They emphasize the importance of investing in education and view the underpayment of teachers as a detriment to the countryโs future development.
The Amalgamated Rural Teachers Union of Zimbabweโs president, Obert Masaraure, called on the government to treat the issue with urgency and encouraged civil servants to fight for their rights and dignity.
Zimbabwe is currently facing hyperinflation, making the cost of living unaffordable for many. Calls for dollarisation have grown, but the government has resisted, instead announcing plans to introduce a gold-backed currency.
In recent years, government employees regularly went on strike to push the government to restore their pre-October 2018 salaries. However, the government says it doesnโt have the financial capacity to pay them at least US$540. Workers believe that the government does have the means but chooses to prioritise other matters, such as buying expensive cars for traditional leaders, to secure their loyalty, particularly during elections. The government justifies these car purchases for chiefs and Members of Parliament (MPs) as part of their employment conditions.
