Zimbabwe’s Government has announced plans to improve the welfare of its Public Servants with the establishment of a $US75 million ($A97 million) Government Employees Mutual Savings (GEMS) fund.
In a statement, the Public Service Commission (PSC) said the fund was aimed at improving Government workers’ livelihoods through flexible personal loans for things like home improvements, solar electrification, borehole installation, property acquisition, livestock rearing, short-term requirements and school fees.
“Treasury has already provided an initial $US75 million as seed capital for the GEMS Fund,” the PSC said.
“Monthly contributions from willing Government employees, at 2.5 per cent of gross salary, will now complete the launch of the fund,” ir said.
The PSC said that after an initial three months’ accrual of contributions, members wishing to access short-to-medium-term loans could submit applications through their heads of Ministries and Departments.
“A nominal lending rate of 10 per cent per annum has been set, with the expectation that lending thresholds will range between that rate and 15 per cent per annum depending on the actual amount applied for and the desired repayment period,” the Commission said.
“After the employer’s injection of seed capital, deductions through the Salary Service Bureau will commence on the February 2021 pay sheets, but this will be on voluntary basis.”
It said that while the expectation was that all Public Servants would recognise the benefit of subscribing to the GEMS, membership was entirely voluntary, and those not wishing to participate could exercise their right to opt out.
“Contributory membership of the GEMS Fund is open to all categories of Public Servants,” the PSC said.
Secretary of the PSC, Jonathan Wutawunashe (pictured) said the GEMS was one of many Government programs aimed at improving the general welfare of Public Servants.
“Besides GEMS, Government has other non-monetary benefits such as housing schemes that are also accessible to Civil Servants to ensure that they have a roof over their heads,” Mr Wutawunashe said.
Harare, 7 February 2021
