Government has capped the salary of Bulawayo’s town clerk at US$7 400 down from US$9 000, and ordered the local authority to peg the lowest salary at the poverty datum line, or just above US$500.
The municipality’s 2016 budget was also rejected as it did not reserve 70 percent of revenue for service delivery and 30 percent for salaries.
“After realisation that local authorities are paying unsustainable salaries and allowances at the expense of basic service delivery the Government seeks to rationalise the remuneration for all local authorities’ employees,” wrote Secretary for Local Government Engineer George Mlilo to Bulawayo acting town clerk Mrs Sikhangele Zhou.
“With immediate effect your inclusive total pay package shall not exceed US$7 400. The salary benefits ratio must be 60:40 percent. The value of all allowances and other benefits that accrue to you must not exceed 40 percent of the total package as given. This ratio must also be applied to total pay packages of council employees across all grades.
“The Government has come up with a remuneration framework for heads of local authorities which should then be cascaded down using a differential that will allow a minimum total pay package that is in line with the poverty datum line for the least paid employee.
“Your budgeting and resource utilisation planning must recognise this new remuneration framework so as to achieve the required 70 percent service delivery as to 30 percent salaries ratio benchmark,” reads the letter.
At a recent media consultative meeting, Bulawayo financial director Mr Kimpton Ndimande said the local authority was in a financial crisis.
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