Mthuli: Civil Servants Pay Hike Good For The Economy

Finance and Economic Development Minister Mthuli Ncube said that the proposed 40 per cent salary increase for civil servants will not destabilise the economy but will result in extra demand for goods and services which will further spur economic growth.

Cabinet announced on Tuesday that it had awarded a 10 per cent risk allowance for teachers while proposing a 40 per cent salary increase for civil servants.

This will result in the lowest-paid civil servant getting over $14 500 and teachers getting slightly above $18 000 per month.

Ncube asserted that the new salary structure, effective from 1 November, will move teachers’ salaries north of the Poverty Datum Line (PDL). Ncube said:

We’re making sure that the ordinary civil servant can be as close to the Poverty Datum Line as possible.

So, for example for a teacher that salary of above the Poverty Datum Line. That’s what we’re trying to achieve and we will be able to do this without destabilising the stability.

In fact, when you look at the ratios, in terms of the salary to total revenue ratio per month that won’t move much.

At the same time, it would have given the employees a decent wage, a wage that is a real increase.

You’ll agree with me that when a currency is stable, inflation is falling, an increase in wages is a real increase and that’s a good thing.

More: Sunday News

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3 comments on “Mthuli: Civil Servants Pay Hike Good For The Economy

  1. Once again The Finance Minister shows the extent to which he is out of touch with the reality on the ground. The Poverty datum Line, by Government statistics was set in August at $17000 for a family of 5. Extrapolate that to 3 months later…. even the highest paid teacher would remian under the PDL. And where does the MInister shop to state that inflation is going down. It’s not bookwork economics that counts here but the bill at the check-out counter in supermarkets.

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