Withdraw Bills Targeting Employees Payslips, Atwoli Pleads With Mps
Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli has pleaded with MPs to dismiss bills that continue to propose tax deductions on workers.
Speaking at a funeral in Kakamega county, Atwoli urged Ikolomani MP Bernard Shinali to withdraw the unemployment insurance authority Bill.
According to the drafted Bill, employees who become unemployed or their respective beneficiaries will be able to get salaries.
This will be done through the establishment of an Unemployment Insurance Fund to which both the employer and employee will contribute.
Shinali noted that the bill will cushion the unemployed against harmful socio-economic effects of unemployment.
However, Atwoli said imposing more taxes on workers is hurting their payslips which in return is leaving them empty-handed.
“I would want to plead with Shinali to abandon anything related to the employment levy because people’s payslips are being deducted heavily. We don’t have anything left on our payslips,” Atwoli said.
“If we have not yet become economically viable as a country we cannot be able to grow our economy. Kenya Kwanza is now putting a mechanism into place to see whether it can spur economic growth. But before that let us not add another burden to Kenyans.”
Since the passage of President William Ruto Finance Act 2023, employees in the formal sector have been making a monthly contribution of 3 per cent to the Housing Fund since July 1.
The levy is payable by the employee and employer at a rate of 1.5 per cent each.