SRC: Salary Hikes After 2021-2025 CBA Will Depend On State Of Economy And Performance

SRC: Salary Hikes After 2021-2025 CBA Will Depend On State Of Economy And Performance

In a very shocking development, the salaries and remuneration commission, SRC, has revealed that public servants’ future salary increments will depend on the state of the country’s economy. Details about this were written in the recently published draft remuneration guidelines for public sector.

“Ability of the economy to sustain increased labour cost shall be considered in determining the level and timing of any awards on remuneration,” states SRC in the draft remuneration guidelines for public sector.


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According to SRC, the negotiated CBA between the trade unions and the employers led to 19% increase in labour cost, a figure that is far much above the annual growth rate in labour productivity. This trend has gone contrary to article 230(5) of the constitution since it has led to a broken link between labour productivity and pay. According to the article, productivity and performance must be considered to determine remuneration and benefits in the public sector.

Covid-19 has left the economy struggling and the treasury CS has warned Kenyans to brace for tight cost cutting measures, including pay cuts for civil servants.

“In an economy where the government is advocating for pay cuts of employees, it would be hard for the same government to increase salaries for some work force,” read the guideline.

SRC has also introduced performance linked pay system, which if applied, any salary increment will be considered based on employee performance.

Earlier on, TSC had hinted strongly that a number of factors will determine remuneration of teachers. As discussed with top KUPPET officials in the Naivasha meeting, these factors include: affordability, sustainability, comparability, government fiscal policies and guidelines, and teacher performance and productivity.

In consultation with SRC, TSC conducted a job evaluation exercise for teachers in 2015/2016.Through the findings, SRC recommended a new grading structure and remuneration of teachers, which has fully been implemented.

The evaluation also defined parameters applicable for determining new teachers’ salaries. These include; teacher’s job content, related duties, minimum qualifications, each job group’s decision making level, requisite accountability, impact of the job, problem solving and job knowledge.

Other key considerations include; managerial skills, working conditions, responsibility, and independent judgment of the job holder.

The recently released guidelines by SRC stress state of economy and employee performance as the major dominants of future salary increments.

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