Govt Employees Monthly Pay to Be Reviewed

The Salaries and Remuneration Commission (SRC) has announced plans to review salaries for government employees, citing widespread non-compliance with the one-third basic pay rule under the Employment Act, 2012.

In a consultative engagement on June 23, SRC Chairperson Sammy Chepkwony committed to a sitting of the Public Accounts Committee (PAC) of the National Assembly.

He was responding to concerns raised in the Auditor-General’s report, which flagged cases where civil servants’ take-home pay had dropped below the legal minimum due to excessive deductions.

“Compliance with the one-third basic pay rule is a priority and actively with us. We aim to correct this in the fourth remuneration review cycle, which is already in the works,” Chepkwony told the committee.

SRC Chair refers to Law Caps Deductions to Two-Thirds of Gross Pay

Section 19(3) of the Employment Act restricts total deductions from an employee’s pay to no more than two-thirds of their gross salary.

This guarantees that at least one-third of the salary remains as take-home pay. The same principle is reaffirmed in Section C.1 (3) of the Public Service Commission Human Resource Policies, 2016.

However, government audits have consistently revealed violations of this law across various public institutions.

Deductions have often exceeded the permitted limit, raising concerns about the welfare of public servants.

Housing and Health Deductions Blamed for Shortfall

The problem has worsened following the introduction of new statutory deductions under the Affordable Housing Act and the Social Health Insurance Act (SHIA).

Also Read: SRC Bows to Pressure, Clarifies on Salary Increments for MPs

The Affordable Housing Levy became partially operational on March 21, 2024. It requires a mandatory monthly deduction of 1.5 per cent of employees’ gross salaries, matched by the employer.

In addition, the Social Health Insurance Fund (SHIF), which officially replaced the National Health Insurance Fund (NHIF) on October 1, 2024, mandates a 2.75 per cent contribution from all residents in Kenya. The minimum monthly contribution is set at Sh300.

MPs Fault SRC for Delayed Action

These midstream policy changes have resulted in higher payroll deductions, leaving many civil servants with significantly reduced net pay. The situation has sparked criticism from MPs, who accused the SRC of not acting fast enough to protect employees.

Also Read: SRC Freezes Salary Review for All Public Officers

Committee members Marianne Kitany, Aldai MP and Nabii Nabwera, Lugari MP, questioned the commission’s commitment to safeguarding workers’ rights amid the financial burden caused by these deductions.

In response, the SRC said the ongoing fourth remuneration review cycle will focus on ensuring compliance with existing legal standards and addressing concerns about workers’ shrinking take-home pay.