Blow to public servants as SRC stops pay rise
By Print Print, July 19, 2024Thousands of civil servants suffered a major blow yesterday after the salaries commission stopped their planned pay rise in this financial year, citing lack of funds.
The civil servants were set for a 7 per cent pay rise starting this month.
In a circular, the Salaries and Remuneration Commission (SRC) announced that it had stopped any salary increment for all public officers, citing fiscal constraints and budget cuts as a result of President William Ruto’s refusal to assent to the Finance Bill 2024.
The commission said that as a consequence, the implementation of the salary review for all other public officers has been deferred forthwith.
“The deferment will only be reviewed upon the availability of funding in the coming financial years,” stated the commission.
Temporary officer
The Public Officer Ethics act defines a public officer as “any officer, employee or member, including an unpaid, part-time or temporary officer, employee or member, of any of the following-
the (national) Government or any department service or undertaking of the Government;
the National Assembly or the Parliamentary Service;
a local authority (such as a county government);any corporation, council, board, committee or other body which has the power to act under and for the purposes of any written law relating to local government, public health or undertakings of public utility or otherwise to administer funds belonging to or granted by the Government or money raised by rates, taxes or charges in pursuance of any such law.”
The decision, the commission explained, is informed by there being no allocated budget for the implementation of the advised remuneration and benefits for all other public officers for the financial year 2024/2025, and which was to take effect in July 2024.
The new directive comes weeks after the commission stopped a scheduled pay rise for state officers including the President, his deputy, Cabinet Secretaries, governors, MPs, senators and ward representatives.
President William Ruto had also rejected the proposal by the SRC to increase his salary and other state officers citing lack of equity.
The Head of State while rejecting the proposal said there was a need to first bring equality in salary payments before implementing the increment.
“Until I have instructed the SRC to give us international best practices because we need to reduce the gap between all of us who work for the people of Kenya. It’s not possible that the people at the top earn 100 times more than those at the bottom, it’s not right because we live in the same country.”
Yesterday, the commission said it made this decision in close consultation with the National Treasury, while considering the principles outlined in Article 230(5) of the Constitution of Kenya, 2010, to ensure fiscal sustainability of the public compensation bill.
Job evaluation
“No additional funding will be provided for implementation of the job evaluation results in the financial year 2024/2025,” stated the commission.
Public service institutions with Collective Bargaining Agreements (CBA) that are impacted by the deferred implementation of salary review in the financial year 2024/2025, have been advised to engage the respective trade unions accordingly.
The commission said it will continue to monitor the situation and consider a review subject to availability of funding, as shall be advised accordingly by the National Treasury.
Two weeks ago, the commission, in consultation with the National Treasury, froze the upward salary review of all State officers in the financial year 2024/2025, taking into account the current realities of the economy, a reduced budget and existing contractual commitments, so as to ensure affordability and fiscal sustainability of the public wage bill.
Public officers including MPs were to get a pay rise even but had to force the SRC to retract the increment following demands by Kenyans who demanded budget cuts and austerity measures in government.
Monthly remuneration structures for State Officers in the Senate and the National Assembly were to be implemented in the financial year 2024/2025, with effect from July 1.
In the structure, the two Speakers of the National Assembly and the senate will starting this month receive a gross salary of Sh 1,208,362 up from Sh 1,185,327, while their deputies will earn Sh 966,690 from Sh948, 261.
The Leaders of the Majority and minority parties will earn Sh800,019 from Sh784,768, while Members of Parliament will earn Sh739,600 from Sh725,502.
Others set to enjoy a pay increment are governors who will now earn Sh1,056,000 up from Sh924,000, while Members of the County Assemblies (MCAs) will earn Sh164,588 from the current Sh144,375.
The changes include adjustments in the basic and market adjustment salary while House allowances remain unchanged.
Other State officers who were to receive a 7 percent salary increment included the Attorney General, the Head of the Public Service, Cabinet Secretaries, Principal Secretaries, the Inspector-General, the Director General of the National Intelligence Service, and the Secretary to the Cabinet.
Ruto said that the salary increment will have to wait until the remuneration commission reports back that the country has met the compression formula threshold.
The SRC had last year proposed to increase the salaries of State officers including the President, Deputy President, Cabinet Secretaries and Members of Parliament by an average of 14 percent.
The commission wanted the President’s salary increased from the current Sh1,433,750 to Sh1,650,000 and that of the deputy president from Sh1,227,188 to Sh1,402,500.
The Commission set a four-year review cycle for remuneration and benefits in the public service. The first cycle covered the period 2013/2014 – 2016/2017, while the second covered 2017/2018 – 2020/2021. The third remuneration review cycle covers the financial years (FY) 2021/2022 – 2024/2025.
Other State officers poised to benefit from the pay rise include Principal Secretaries, Speakers of the National Assembly and Senate, leaders of Majority and Minority, Chief Justice, Judges, Magistrates, Governors as well as Chairpersons of Constitutional Commissions and Independent Offices.
The draft changes will be subjected to public participation before they are officially gazetted to bring them to effect.
President Ruto said that the salary increment will have to wait until the remuneration commission reports back that the country has met the compression formula threshold.