Trade unions representing public service workers have condemned the move by the Government to deduct their USD salaries for their pension contributions, reported <a href="https://www.newsday.co.zw/local-news/article/200027879/civil-servants-govt-clash-over-us-deductions">NewsDay</a>.
This comes after Public Service Commission (PSC) Secretary Tsitsi Rosemary Choruma-Dozwa on 28 May wrote a circular stating that all public service workers would be required to pay their pension contributions in foreign currency, starting this year.
Civil servants earn salaries both in United States dollars and ZiG and the new directive states that government workers would use the same ratio in making their contributions.
However, unions representing government workers have described the move as “fraudulent”.
Progressive Teachers Union of Zimbabwe (PTUZ) secretary-general Raymond Majongwe has since written to the PSC challenging the decision to implement US dollar deductions.
Majongwe said they were alarmed “by such callous unilateralism intended to further impoverish civil servants.” He added:
<blockquote>
The US$ National Social Security Authority deductions must be commensurate with the US$ salary adjustments, and in any case, the proposed deductions and backdating are not a product of consultation with stakeholders such as unions representing the civil servants.
The US$ NSSA deductions must succeed in meaningful US$ salary adjustments which we feel are long overdue, and the PSC and government must respect its workers and desist from approaches that are tantamount to colonial master and servant relationship.
</blockquote>
Speaking to NewsDay, Amalgamated Rural Teachers Union of Zimbabwe president Obert Masaraure said:
<blockquote>
The US$ deduction is going to severely affect workers, the majority of who earn depressed salaries.
We continue to demand a US$1 260 salary for teachers so that they will have enough to cater for the basics even after paying these subscriptions.
</blockquote>
Zimbabwe Teachers Association (ZIMTA) spokesperson Goodwill Taderera said:
<blockquote>
What is critical is that they have to communicate before a deduction is made. We strongly advise that in future our employer should make a communication first so that we can prepare before a deduction is made.
</blockquote>
Zimbabwe Congress of Trade Unions (ZCTU) vice-president Valentine Chikosi:
<blockquote>
Workers are faced with a precarious situation where their salaries are predominantly in ZiG yet their expenses are predominantly in United States dollars.
People need foreign currency to cover rent, transport, fuel, medical expenses and school fees among other statutory obligations.
Workers are left with no option but to source the much-needed US dollars from the black market risking being arrested.
</blockquote>
Chikosi said the ZIG had so far failed to improve the welfare of workers, adding that there was an urgent need to address the “peanuts” salaries earned by most workers.
Meanwhile, the NSSA acting General Manager, Charles Shava, stated USD contributions by public service workers “would go a long way in sustaining the viability of the NSSA scheme.”
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Govt Faces Backlash For Deducting Civil Servants’ USD Salaries For Pension Contributions

The government has declared that all public service workers who earn in foreign currency would be required to pay their pension contributions in the same currency, starting this year.
Civil servants earn salaries both in United States dollars and ZiG and the new directive states that government workers would use the same ratio in making their contributions.
In a circular dated 28 May 2024, PSC Secretary Tsitsi Rosemary Choruma-Dozwa stated that the USD National Social Security Authority (NSSA) contribution would be implemented following the conversion of USD COVID-19 and cushioning allowances to pensionable emoluments with effect from 1 January 2024. She wrote:
<blockquote>
Please be advised that the Treasury has concurred with implementing the provisions of Statutory Instrument (SI) 169/2021 on the public sector employees with effect from 01 January 2024, Section 8(b)(4) provides that, “Any person in Zimbabwe who earns remuneration in a currency other than that of Zimbabwe shall be required to pay his/her contributions in foreign currency and in cases where individuals earn remuneration in a combination of foreign currency and Zimbabwean Dollars, he or she shall pay contribution the same currency ratio.”
Please note that the outstanding contributions should be staggered in three months, commencing in 2024. 
</blockquote>
As reported by <a href="https://cite.org.zw/public-service-workers-to-pay-pension-in-foreign-currency/">CITE</a>, Choruma-Dozwa also wrote to the government’s Paymaster advising of the same instruction.
This came after NSSA Acting General Manager, Charles Shava wrote to the Permanent Secretary in the Ministry of Public Service, Labour and Social Welfare on 24 January 2024, requesting assistance to notify the PSC that following the conversion of the USD COVID-19 Allowance for public service employees into a pensionable salary, NSSA advised on the computation of NSSA contribution as guided by Section 8(b) of SI 169 of 2021.
The NSSA acting General Manager stated that this request “would go a long way in sustaining the viability of the NSSA scheme.”
This prompted Simon Masanga, the Permanent Secretary in the Ministry of Public Service, Labour, and Social Welfare, along with George Guvamatanga, the Permanent Secretary in the Ministry of Finance and Economic Development, to write to the secretary of the PSC, requesting the same order. Reads the letter in part:
<blockquote>
Following the conversion of the US$ COVID-19 and US$ cushioning allowances for Public Service employees into a pensionable salary, the NSSA has advised that the computation of NSSA contributions is guided by Section 8(b) of SI 169 of 2021.
Given this development, NSSA is requesting the commission to implement the provision of SI 169 of 2021 with effect from 1 January 2024 to enable the viability of the NSSA schemes.
</blockquote>
Meanwhile, unions representing public service workers have criticised the move, saying it will further impoverish them.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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