Mengo hospital proposes to cut staff salaries by up to 20%

Coronavirus outbreak

Management has asked staff at Mengo hospital to accept a pay cut of their salaries by up to 20 per cent for the months of May, June and July due to the impact of the Coronavirus.

In a May 22 letter to individual employees, Dr Rose Mutumba, the Mengo Hospital Medical Director says Covid-19 has had a negative impact on their business and consequently, there has been a review of business goals, objectives and processes in order to find ways to decrease expenses.

“Subject to your consent, the Board of Governors and management have taken a decision to take a pay cut on the salaries of May, June and July 2020. This was an extremely tough decision and we understand the impact it will have on you and your family,” the letter by Mutumba reads in part.

The health facility proposes that employees who earn above one million shillings will have a 20% deduction on their salaries, whereas those who earn between shs550,000 and shs990000 will take a 15% cut.

Employees earning between shs421000 and shs550,000 will take a 9% cut whereas those earning between shs420,000 and shs400, 000 will take a 5% pay cuy.

“If you agree to the proposed measure (pay cut), you will see a reduction in your salary for the upcoming months effective May,1,2020 until July 2020. The Mengo hospital board and management will continue to monitor the hospital’s finances and re-evaluate this decision each month dependent on monthly business performance. I believe the outcome from this measure will better position Mengo hospital for a solid financial future,” says Dr.Rose Mutumba, the hospital’s Medical Director.

A number of companies in Uganda have in the past three months either closed business, cut down their costs, laid off staff or cut pay for their staff in a bid to ensure they survive the Coronavirus crisis that has had an effect on all economies throughout the world.

 

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