MK70bn for civil servants salary increment in 2024/2025 budget
Finance Minister, Simplex Chithyola Banda, has announced that the government has reserved K70 billion for general salary increment for civil servants in the 2024/2025 national budget.
He said this when he presented the fiscal plan in Parliament on Friday.
However, the minister has not explained in the budget statement how the increment will be spread in percentages across the board of the large civil service.
According to Banda, wages and salaries are projected at K1.08 trillion, representing 5.7 percent of GDP.
“The wages and salaries estimates have also incorporated resources for recruitment amounting to K6 billion and K70 billion reserved for general salary increment,” he said.
The minister also announced that, in order to cushion employees in formal employment from the effects of the currency alignment, the Government has increased the zero Pay as You Earn (PAYE) bracket from MK100,000 to MK150,000.
According to Banda, the new monthly PAYE structure will be as follows:
“First MK150,000 will be taxed at 0 percent, next MK350,000 will be taxed at 25 percent, next MK2,050,000 will be taxed at 30 percent and excess of MK2,550,000 will be taxed at 35 percent”.
He further announced that pensions and gratuities have been projected at K193.17 billion while Government Contributory Pension Scheme has been allocated K46.75 billion.
