Salary hike for civil servants

STAFF REPORTER

MASERU – The Minister of Finance, Dr Moeketsi Majoro, today announced a five percent increase in civil servants salaries, following his decision in the past fiscal year not to award them salary increments in the 2019/2020 financial year.

In his budget speech in the past year, Major had tabulated an austerity budget highlighting a five percent salary cut for cabinet ministers and a litany of other plans to reduce the government recurrent expenditure to support government saving.

Tabling the 2020/2021 budget estimates in the National Assembly today the minister said this adjustment will be across the board to offset projected inflation rates.

To protect the lower salary grades from increased tax burden arising from the adjustment Majoro proposed that the tax credit of M800 per month be increased to M840 per month while the tax bracket will be adjusted from M5 090 per month to M5 350 per month on the lower tax bracket.

“Old age pension currently stands at M750 per month…and it is proposed that it be raised by M50 per month to M800 effective from April 1, 2020, as a way of protecting the buying power of our senior citizens,” the minister said.