Africa-Press – Botswana. Initially intended to reduce overcrowding in retail stores during the COVID era, the staggered salary payment system will be retained because an assessment has shown positive results for the economy from it.
The government will permanently adopt the system of staggered public service salary payment that was introduced as a temporary measure during the COVID-19 pandemic, Parliament has heard.
Responding to a question raised by the MP for Kanye West, Victor Phologolo, the Minister of Finance, Ndaba Gaolathe, said the staggered salary system, which was originally intended to reduce overcrowding at shopping malls, will remain in place indefinitely.
He added that this is because government analysis has shown that the payment schedule has had a positive effect on the economy, particularly benefitted businesses and Small Medium and Macro Enterprises (SMMEs).
Seven-sector survey
To assess its impact, the Ministry of Finance conducted a perception survey in January 2023 across seven sectors in both the public and private sectors, including financial institutions.
“The results were encouraging,” said Gaolathe. “The spread of economic activity throughout the month and a noticeable reduction in overcrowding at business premises were noted. Additionally, there was apparent improved performance among SMMEs.
“Previously, government employees were paid starting from the third week of each month, with a three-day gap between pay groups. The new payroll schedule, however, pays each group monthly (but) one week apart.
Continuous economic activity
“This revision ensures a more equitable distribution of money throughout the month, thus promoting continuous economic activity and still playing a role in limiting the spread of communicable diseases.”
The minister noted that over 50 percent of the surveyed sectors opposed a return to the previous payment system. Furthermore, most sectors indicated they had not experienced any additional costs due to the change but were instead benefitting from the new structure.
“The feedback clearly supports maintaining the current payroll arrangement, given its contribution to smoother economic flow and improved business performance,” said Gaolathe.
For More News And Analysis About Botswana Follow Africa-Press
