MASCA Cuts 2025–2026 Bonuses by Half, Staff Warn of Morale and Financial Strain

MASCA halves 2025–2026 staff bonuses, citing cost containment, sparking employee backlash over morale, pensions and legal consultation concerns (image source)

HARARE — The Medical Aid Society of Central Africa (MASCA) has announced a 50 percent cut to performance bonus provisions for the 2025–2026 financial year, triggering discontent among staff who say the decision will worsen financial strain and erode morale.

In an internal memo dated October 6, MASCA’s chief executive and chief financial officer informed employees that the board had approved the bonus reduction as part of a wider cost-containment strategy. The letter outlined that bonuses will now be strictly performance-based and subject to board discretion, marking a departure from previous practices and tightening eligibility criteria for payouts.

Employees responded with frustration, arguing that the decision was made without adequate consultation and would hit household finances hard amid Zimbabwe’s persistent cost-of-living crisis. “Bonuses are part of our total remuneration and an important buffer against rising costs,” said one staff member anonymously. “Cutting them in half without clear dialogue undermines morale and trust.” The memo also reportedly mentioned a temporary suspension of certain employer pension contributions in the 2026 financial year — a move staff say raises serious concerns about long-term retirement security.

MASCA management defended the decision, citing operational pressures and a need to preserve the organisation’s financial stability. Officials said the measure is meant to protect core services and maintain solvency while reforms are introduced to improve efficiency, strengthen collections and reduce administrative costs. “These are difficult but necessary choices to ensure MASCA remains sustainable,” a senior official said.

The announcement comes amid lingering unrest and allegations of mismanagement that have shadowed the society since 2023. Labour unions have demanded full disclosure of MASCA’s financial status, a clear plan for benefit restoration, and formal negotiations over pay-related changes.

Labour lawyers have since warned that unilateral changes to compensation and pension terms may breach employment law, which requires meaningful consultation on any alteration of fundamental conditions. “Management risks exposure to legal challenge or industrial action if due process isn’t followed,” one employment law adviser said.

Observers note that MASCA’s move could set a precedent for other employers in Zimbabwe’s healthcare and insurance sectors as they balance financial pressures against staff welfare. Meanwhile, employees are calling for urgent dialogue with management and the board to clarify the rationale, timelines and safeguards surrounding the bonus cuts — while indicating readiness to pursue dispute mechanisms should talks fail to yield a fair resolution.