TSC Teachers and Government Employees Will See Salary Increases

The Salaries and Remuneration Commission (SRC) has recommended that teachers and government employees in Kenya receive a pay raise starting in July.

Allocation of Funds and Employment Evaluations
According to records supplied to the departmental committee on finance and national planning, the Treasury has allocated the Wages Commission a sizable budget of Sh17.7 billion. The majority of this money will go toward finishing up any unfinished performance reviews.

Talks between SRC and Treasury
The terms of the anticipated pay raise for teachers and government employees are now being discussed between the Treasury and the SRC. The money will be allocated to the appropriate MDAs after an agreement has been reached.

Lifting the wage freeze
A wage freeze that has prevented teachers and other public employees from having their salaries reviewed in two years would be broken if the planned compensation increase is approved. However, it’s critical to keep in mind that this increase comes at a time when the government is having difficulty meeting its financial obligations, such as paying its debt and paying its employees.

Application and Finance
According to Chris Kiptoo, the Treasury Principle Secretary, who also addressed the problem of money, the Sh17.7 billion provision is a portion of the larger Sh70.96 billion set aside for key policy projects. Additionally, Sh2.1 billion has been promised to the National Health Insurance Fund (NHIF) for use in meeting contractual obligations.

SRC’s Position in Review of Compensation
Position of the SRC in Compensation Review Salary and benefit evaluations for the public sector must go via the SRC. The first cycle of evaluations covered the years 2013–2017, and the wage freeze that went into force in 2021 stopped the second cycle, which covered the years 2017–2022. To improve the job grading system in the public sector and streamline benefits for all employees, the commission has been working hard.

Effect on Government Employees and the Economy
Around 954,000 civil servants who have been struggling to make ends meet as a result of the cost of living increase would benefit from the projected wage increase. Due to the high prices of food and fuel, employees have not fully benefited from the decreasing inflation rate. The expectation of salary among employees in the private sector may rise if government salaries rise.

Position of President Ruto on Paycheck Distribution:
President William Ruto has reaffirmed that salaries in the public sector will not be paid using borrowed funds. He believes it is preferable to wait until payday to make purchases rather than having to turn to borrowing. The choice was made to fortify the budget and stop further debt accumulation.

Since President Ruto recently expressed concern about Kenya’s low revenue-to-GDP ratio in an interview, the future of taxation is uncertain. He made the implication that in order to solve the issue, the nation might need to raise taxes. The Sh3.6 trillion spending may be paid for by the government proposing additional levies, which would be addressed in the future budget presentation to Parliament.

TSC Teachers and Government Employees Will See Salary Increases

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