MINISTER of Finance Alexander Chikwanda says Government will use the two years of a freeze on upward wage adjustments to plan for better emoluments for public service workers and tackle salary imbalances currently prevailing in the Zambian civil service.
Mr Chikwanda explained that the freeze was in no way meant to harm Zambian workers, who have recently received a huge wage hike of more than 100 percent, the highest since independence.
Mr Chikwanda said Government will not rescind its decision to enforce the two-year wage freeze in the public service as negotiations for improved conditions of service between Cabinet Office and the labour movement continue.
The minister said this in Lusaka yesterday when he featured on Zambia National Broadcasting Corporation Radio Two Government Forum programme.
“We are taking into account serious imbalances in wage structures for the public service. We want to try and see if we can tone down on those imbalances, those inequities.
“We are going to plan over this in 2014 and 2015 and defer salary adjustments to 2016 when we will have a better prepared plan,” Mr Chikwanda said.
Mr Chikwanda said Government decided to freeze wage adjustments to enable it to take measures that are in the interest of public service workers.
The minister said the civil service is slightly bloated and cannot be used as a mechanism to create more jobs.
He said Zambia cannot continue with glaring inequities and that there will be no fiscal space in 2014 and 2015 to increase salaries.
Mr Chikwanda said increases in salaries for civil servants this year are quite substantial.
He said the 200,000 jobs Government anticipates to be created in the next two years will be in the private sector.
“The budget this year is K10 billion bigger than the budget last year…there has been a tremendous increase in the emoluments,” he said.
The minister said the wage bill for public service workers has increased from K11 billion in 2012 to K15 billion in 2013.
Mr Chikwanda said this means that 52 percent of locally generated revenue would be spent on salaries for civil servants.
“This is why, with due humility, we suggested a moratorium so that we can put things in place. One of the cost overruns related to maize subsidy is that we are carrying on the burden of K1.3 [billion] into the 2014 fiscal year,” he said.
He also said foreign investment is still coming into Zambia and that the international investment community still perceives Zambia as a positive investment destination.
“There is a lot of investment pouring into the country and it is estimated around US$5 billion and the bulk of it is in the mining sector,” he said.
He said Government has continued to create a favourable investment climate in the country by simplifying company registration procedures.
Mr Chikwanda said Zambians should take advantage of the good policies Government has put in place to invest and improve their living standards.
He said Zambia has all the necessary facilities to do business but some have chosen to engage in unnecessary politics which do not benefit them.
“Zambians must stop this excuse of blaming it on Government for not being an adequate facilitator. They should just work and strive a bit harder, have creativeness and vision,” Mr Chikwanda said.
Civil servants recently received a more than 150 percent salary hike.
52% of the nation’s wealth being used to pay 5% of the population.Retirees paying more for their talk time to pay lazy civil servants for reporting late for work and knocking off early.
The Zambian Civil service is the laziest in the world!. They only spend 1 hour at work and the rest ………kaya!
The Zambian lazy culture and indifferent attitude towards work must stop. Majority o Zambians love easy money while very few are hard working.
Zambians love politics a lot at the expense of innovation, development ideas and hard work and you can actually tell from the number of soaring blogs on any political article and almost no comments on economic ones.
Like Movie TV……One hour on Camera and the rest of the day bonking each other.
Exactly what I thought. It seems that this man has run out of ideas. I suggest that he consults Dr. Musokotwane and get some insights on how he can run his ministry. Reading through Dr. Musokotwane’s analysis of the 2014 budget, it is clear that he is more realistic and cut throat by pin pointing the threats in this budget like the deficit which stands at 8.5% and offering a rationale to overcome it. This man will plunge this country into chaos if he continues to behave like a kaponya instead of being a professional than he is known to be. I salute Dr. Musokotwane and I rest my case.
Just too much politics and talking. Very few serious pipo who take life seriously and want to work. Pipo just want free things and believe Govt should provide everything and has all the money. But where does the money comes from? It comes from production not talking everyday on Radios, Tvs, seminars, bars etc. The so called Educated are the waste and you just free sick about our attitude as a pipo. Everyone needs a serious reorientation of Mind. The Minister of Finance has a Vision and needs Support.
Hope he could get that support from pf first. Consider how Si…..was revoked and the way the wage freeze was put on hold by the Secretary to Cabinet and Unions.
You are right , the minister of finance has a vision and needs our support. ..
The problem is that he is not the final authority and needs very much to listen to constructive criticism like one offered by the immediate former Finance Minister Situmbeko Musokotwanwe.
This wage freeze has nothing to do with vision,Zambia has over borrowed and they need to find revenue internaly to service the debt.Govt is slightly bloated by his acceptance,who has contributed to the bloating? Why has two Deputy ministers in each ministry,Govt can actually do without these useless posts! But at the end of the day,”They are all in Govt to Eat”
Politics are never good for economics. While the opposition was complaining that government is trying to create employment trhough the public service, they are no were near to support the government to stop enlarging the already bulky,inefficient,lazy civil service. The same people complaining about the defict are the same people who want not to raise the retirement age even if they know they left a depleted pension fundand a lowly paid lazy civil service and at the same time cannot support the government wage freeze. one clown I know even went to UTH to support striking nurses.
Raise the retirement age and keep the ‘bloated civil service’ intact while excluding young graduates from public service…what an excellent prognosis!
The purported increment of 150% awarded to all civil servants in 2013 as reported in some sections of the media is sending a wrong signal. It is important to state that the increments ranged from 4% to over 100%.
Yes actually the truth is from 4% to 100 and not 150 or 250 usually announced even at znbc news. and also we hope that personal emoluments will be cleared cause the government owes government workers a lot as stated by the Finance Minster in his first paragraph.
After 2016 this man must re persued how he got single sourced to renovate state. Old men like him and Sata dont add no value to life. Instead they take away from the poor
“We are going to plan over this in 2014 and 2015 and defer salary adjustments to 2016 when we will have a better prepared plan,”
The above statement is a clear indication that we have in a place a govt which is not well prepared to govern. How does it take two years to just plan. What is going on? If that is true, then at the end of the two years they (PF) will be shocked that the landscape would have changed so much that their plans will be absolute. Speed and accuracy is but the name of modern management. From this it is also clear that we do not have a modern govt in place, hence forget about development.
ZCTU had a point to demonsrate, but it is like other affiliate unions are still two steps behind. There we are, the minister has put it straight “Whether they negotiate or not the Wage Freeze stands”. SESTUZ what is your comment.
The wage and recruitment freeze are off in prospect as was agreed by the Sec to the Cabinet and the Unions. The Finance Minister is in a sort of pressure and is now voicing more his opinion.
I hear Sata has bought smart phones using taxpayers money for these guys you see bloggin and counter insulting for him. I understand they are counselors. And they get paid for air time.
Mr Chikwanda Sir,your policies if that is the best for you,Zambians think they are below par that is why the Civil servants want to demostrate.Leave that office for other people with policies that the civil servants will agree with.Yours are rejected by you employees the Zambians.Leave please leave it to others.what ever comes from you does not seem to agree with the contract you signed with the Zambians.They nolonger need your services leave please
The minister said the wage bill for public service workers has increased from K11 billion in 2012 to K15 billion in 2013.
I am bit short on arithmetic; does this translate into 100% or let alone 150% increment across the board for civil servants that is being tooted here?
Raising star by your name i should like to believe you are young, to that end i will be soft on you.
It is true that they got over 100% increament but it only took effect in September 2013, meaning from January 2013 to August 2013 they were getting the same salaries as in 2012 hence the small difference between the K11 billion for 2012 and K15 billion for 2013.
There is nothing wrong with your arithmetic except how you apply them. Remember the ratios, propotions and prolata if you have been to college.
servicing debts i gues
GRZ is the largest employer,and for the next 2 years young men and women from ALL educational institutions won’t be employed; to this figure,add those who graduated a few years ago who are unemployed.
The PF has mismanaged Zambia’s economy.Budget overruns,lack of planning,corruption,plus dictator Michael Sata’s wild project pronouncements have caused this wage freeze and the suspension of recruitment.In 2016,an election year,the PF will announce the start of other big unplanned projects to confuse the electorate.
Chikwanda should stop fooling us,we know the truth.
what a government !come 2016,we shall vote wisely.
U get 4% and publise that civil servants were awarded 150%,
Ukufrila 4% for 2yrs ,
If you think you deserve better why not try the private sector?
As much as I know that PF has made serious mistakes, I also know that they are working very hard in rural areas where the majority of the voters are. Talk of VUBWI- people have changed their stance because of the road and electricity that are being taken there. Businessmen from Chipata are seriously fighting for land in Vubwi. PF is also building schools and helath centres. So do not take it for granted that in 2016 PF will lose. They are busy doing their homework. I think even the evergreen Father Gabriel Msipu is happy that what he has been talking about for over 20 years now is getting attention from the PF govt.
I THINK ITS NOT RIGHT TO KEEP FOOLING PEOPLE WITH SUCH PERCENTAGES THE FACT IS ITS NOT ALL CIVIL SERVANTS WHO RECEIVED SUCH PERCENTAGE INCREMENTS MOST OF US RECEIVED LESS THAN TEN PERCENT ITS ACTUALLY THE UNSKILLED AND THOSE WHO WERE GETTING SAY 1000 WHO RECEIVED SUBSTANTIAL INCREMENT. CONSTITUTIONAL OFFICE HOLDERS RECEIVER 10% WHILE MOST OF US RECEIVED 4 TO 8% INCREMENT. SO LET NOT THIS OLD MAN DECEIVE THE NATION THAT ALL CIVIL SERVANTS RECEIVED GOOD INCREMENT. WE SHALL GO ON STIKE IF THIS OLD FOOL INSISTS ON THE WAGE FREEZE. LET HIM FREEZE HIS WAGE AND THAT OF OTHER CONSTITUTIONAL OFFICER HOLDERS.
Wage freeze……but commodities keep on increase.Cement in rural areas is selling at K95. ZESCO’s tariffs (26% increase) has been approaved………………..this means increased production costs………………..increased goods and services……….increased hardships to the vulnerable/common Zambians.SAD INDEED.
confusion continues again; secretary to the cabinet agrees with the unions to do away with the wage freeze ,minutes the minister says wage freeze is still there..you people you are confusing us. what are we suppose to believe now….and for people saying civil servants are lazy are not aware what it takes to be a civil servant especially those who work in rural areas;i can assure you these people really suffer due to shortage of manpower
“We are going to plan over this in 2014 and 2015 and defer salary adjustments to 2016 when we will have a better prepared plan,” Mr Chikwanda said.
What, better prepared plan in 2016? Wasn’t a better prepared plan supposed to be in 90 days?
Guys, 2016 is just the new version of the 90 days lies.