The Salaries and Remuneration Commission (SRC) plans to slash public sector allowances in an attempt to bring down the high government wage bill. The commission made the announcement on Monday, during the media briefing on ‘Draft Allowances & Benefits Policy for the Public Sector’.
Public-sector wages have risen steeply in recent years moving from KSh434.9 billion in 2012/13 to KSh827 billion in 2019/20. A study by the SRC found that 247 allowances were paid to public officers in 2019, up from 31 allowances in 1999. Allowances formed 48% of the total wage bill in 2019.
The Salaries and Remuneration Commission, which reviews the remunerations and benefits of all State officers in Kenya, aims to increase transparency, accountability, equity, and fairness in public sector compensation through the implementation of the Allowances and Benefits Policy.
Under the proposed policy, allowances will be categorized into five clusters namely; house allowance, commuter allowance, job-related allowances, task-related allowances, and labour market adjustment allowances. In addition, SRC proposes that, “Allowances and benefits shall not be paid for purposes that are already compensated for in the basic salary thus resulting in a remuneration package that exceeds the relative worth of a job”.
Speaking during the media briefing, Lyn Mengich, SRC Chairperson said, “SRC seeks feedback from stakeholders/public on the ‘Draft Allowances & Benefits Policy for the Public Sector’. Final policy to be issued before the next financial year, then implementation to be done within 6 months”.
Also read; Treasury to Review Allowances as Wage Bill Takes 48% of Revenue
