Allowances and Benefits Policy : Teachers, Civil Servants In Kenya Reject Two-Year Pay Increase Freeze

The Salaries and Remuneration Commission (SRC) in Kenya have dannounced there would be no salary increments for all civil servants for two years beginning July

This announcement comes. amid admissions from the country’s National Treasury that it is struggling to get enough money to run government.

This decision sets the stage for a clash between the unions and the government, which may paralyse smooth running in key sectors. The suspension affects the workers’ basic salary, allowances and other benefits.

Civil servants, teachers and lecturers have rejected the government’s decision. Teachers and lecturers in public universities will also be affected by the decision.

The new move will hit public-sector workers hard, coming just months after the SRC directed all public institutions to ensure workers’ allowances do not exceed 40 per cent of their pay.

Implementation of the directive begins next month and will have the effect of reducing incomes earned by a majority of government workers who have been relying on allowances to make extra money

The SRC Thursday said the decision to suspend implementation of the third remuneration review cycle had been prompted by the difficult economic times the country finds itself in, largely due to the Covid-19 fiasco.

The commission said the government would save a substantial amount from the Sh82 billion it would have spent on implementation of the 2021/22 – 2024/25 remuneration review cycle.

SRC Chairperson Lyn Mengich said the commission considered the government’s financial constraints, the current wage bill and the need to release resources for investment to jumpstart a Covid-19-ravaged economy.

In line with the new directive, no additional funding will be provided for implementation of job evaluation results in the financial year 2021-2022 and 2022/2023.

The commission also stated that public-sector institutions will be required to fully implement the Allowances and Benefits Policy beginning July, which now requires that all the allowances government workers earn should not exceed 40 per cent of their total pay.