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Home » News » Gov’t cancels salary increments for public servants in order to tame rising wage bill

Gov’t cancels salary increments for public servants in order to tame rising wage bill

Last updated: April 16, 2024 9:49 am
2 years ago
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Lyn Mengich, Chairperson of the Salaries and Remuneration Commission, Kenya
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Public sector employees will not see an increase in their monthly salaries, as employers have been advised against doing so to address a high wage bill.

Speaking on Monday during the 3rd National Wage Bill Conference at the Bomas of Kenya, Lyn Mengich, Chairperson of the Salaries and Remuneration Commission (SRC), highlighted that this decision aims to achieve fiscal sustainability and harmonization.

Mengich emphasized, “Affordability and fiscal sustainability are key considerations in any collective bargaining negotiations. Therefore, employers are advised not to consider any review of financial items unless there is a demonstrated ability to afford and sustain such a review, among other considerations.”

She further stated that all institutions should aim to operate within the 50th percentile mid-point in offering salaries, and those falling below this mark should make efforts to reach it promptly.

Explaining the concept of the 50th percentile midpoint, which is determined by the SRC, Mengich noted that if a public servant’s salary falls below this midpoint, the employer is recommended to adjust it to the required or near-median level.

Addressing the same gathering, Head of Public Service Felix Koskei urged public servants to be patient as the government seeks solutions to the economic challenges. He emphasized the need for the nation to live within its means, as the government is facing constraints due to a high wage bill.

Koskei stated, “We urge all employers and employee unions to recognize the state of the economy and the measures the government has taken to improve it. At this time, seeking additional salary increments is not feasible.”

President William Ruto has previously emphasized the need for fiscal prudence, stating that the government cannot afford to allocate more funds than what the Treasury has available. He made it clear that there will be no additional funds allocated to doctors beyond what has already been offered.

In response, doctors have maintained their nationwide strike until their demands, including salary increments, are met.

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