Kenyans Face More Salary Cuts For Unemployment Insurance Fund
Kenyans Face More Salary Cuts For Unemployment Insurance Fund
Kenyans Face More Salary Cuts For Unemployment Insurance Fund
After the Unemployment Insurance Bill 2022 was submitted to the parliamentary budget office on Thursday for review, salaried Kenyans will now be subject to additional monthly deductions. Employers and employees will contribute each month to the fund under the legislation that Ikolomani Member of Parliament Bernard Shinali is sponsoring.
In the law, Shinali says that South Africa, where employers and employees each have 1% withheld, served as an inspiration for the Fund. According to the law, “the proposal is to establish the Unemployment Insurance Fund, to which both the employer and employee will contribute, to provide for the payment of unemployment benefits to employees who become unemployed or their beneficiaries.”
According to Shinali, this will make it easier for unemployed workers to get by during challenging socioeconomic times. The fund will be replenished in addition to salary deductions by parliamentary appropriations from the federal government, county government funding, as well as gifts and grants from international organizations.
According to the Bill, the Unemployment Insurance Authority, which will be created by a parliamentary act, will be in charge of the funds. The Authority will be a body corporate with established rules and laws, a board of nine members, and a chairperson. The bill states, in part, that the Authority’s duties will include managing the Fund, advising the Cabinet Secretary on unemployment insurance laws and policies, providing advice to both levels of government on issues relating to unemployment and unemployment insurance policy, and assisting in the implementation of such policies.
The Treasury Cabinet Secretary will have the authority to exempt specific cadres of employees from the required pay deduction should the Shinali-sponsored bill succeed in parliament.
The pay and Remuneration Commission (SRC), which determines the pay of state executives and other public employees, will provide advise on how to proceed.Kenyans who are between the ages of 15 and 64 and have been looking for job unsuccessfully for four weeks will be eligible to receive benefits from the kitty.The said unemployed person shouldn’t be so disabled that, if a job chance arises, he is unable to work.
