Decision On 1.5% Housing Levy Deductions
Decision On 1.5% Housing Levy Deductions
Decision On 1.5% Housing Levy Deductions
There has been uncertainty and anxiety on what would happen to teachers’ paystubs at the end of July 2023 since the court cases nullified the intended salary raise for all federal officials commencing on July 1, 2023.
This has put an end to the rumors concerning the teachers’ July paystubs. The Treasury and the commission closely collaborate when the commission makes judgments.
Therefore, by the time it announced that it will adjust civil servant salaries upwards, it had already received approval from the Treasury to carry out the increment.
Their advice is primarily based on research regarding the current state of the economy and inflation.
The official body entrusted with advising the government on matters relating to public servant compensation and benefits is the SRC. Their advice is largely backed by science.
The TSC receives financing far in advance for the salaries and allowances of its members, so last month it received this money meant for the wage hike, ready for implementation in July.
Because of this, the wage increase for the more than 300,000 instructors who are employed by TSC is included in the salaries for July. The teacher unions raised doubts about the standards applied to determine that percentage.
They were informed that since the government was handling the increment through SRC to protect all civil employees against inflation, their opinion was not needed.
The teachers unions persisted in challenging the standards applied to get that proportion. The country was still recuperating from the COVID-19 epidemic when this increase was originally planned to go into effect in the fiscal year 2021–2022, therefore it was delayed.
The Treasury Department also told the SRC to wait to make any changes until the current fiscal year.
The pay raise, nevertheless, will be implemented gradually over a four-year period. Beginning in July of this year, teachers will receive a 7% pay increase for the fiscal year 2023–2024 on their payslips; in the following year, they will receive an 8% pay increase for the fiscal year 2024–2025.
They will earn 9% and 10% in the third and fourth years, respectively, and 10% for the fiscal year 2026–2027 in the fifth and final year.
It is important to keep in mind that the court order that prohibits the state from carrying out the Finance Act of 2023 will not be heard or decided until the housing levy deductions have been implemented.
Since then, the Kenyan attorney general has challenged the high court’s ruling in the case, and this coming week is when both the appeal hearing and the case’s decision are expected to start.
