Barely three months after the Treasury read the budget 2021/2022 financial year, government employees have a reason to smile. The Budget was affected by the Covid-19 economic hardtimes. The cost of living was hiked as the taxes on the basic needs was excised so as to ensure that the country raises more money to facilitate the Budget.
Some of the employees’ expectations like teachers were cut underneath since on the CBA, no monetory increment but we’re given a non-monetory needs, for instance maternity leave was increased from 90 days to 120 days while paternity leave increased from 14 days to 21 days.
Fortunately, these Government employees have a great reason to smile after the Ministry of Finance through Treasury has made the following bold step to boost and support them.
The National Treasury has ordered ministries to set aside money to cater for the salary increase for civil servants starting next year.
On the other hand, the workers on short contracts will also be hired on Permanent and pensionable terms. This is according to the circular sent to the ministries, departments and agencies by CS Treasury Ukur Yatani, who is set to launch preparation of the 2022/2023 and medium- term budgets this morning.
This comes barely two months after the Salaries and Remuneration Commission announced a freeze on the increases in salaries and allowances for two years to save taxpayers from a high public wagebill. This is indeed good news to both civil servants and teachers who are stretched by high economic demands.
The government had in June, halted salary increments citing a non-performing economy due to Covid-19. The Salaries and Remunerations Commission said a 2-year halt in pay increase would save the country Sh82 billion.
The IMF had also announced that Kenya had committed to keeping civil service pay unchanged after the Fund’s board approved a new Sh250 billion loan.
“This will be accomplished through continued restraint in hiring and wage awards, including in the four-year wage agreement that will come into effect in 2021/22 financial year and by improved wage bill management,” disclosed the IMF.
However, the rise in the cost of living has eroded public servants’ purchasing power. According to a recent report by Business Daily, civil workers haven’t received a raise since 2017 and have relied on generous allowances to boost their take-home pay, but SRC intends to reduce the benefits.
Former KNUT Secretary General Wilson Sossion recently commented that stagnation in the same job group has resulted in many public servants, including teachers, police officers and health practitioners, attaining the maximum salary within the job group.