CS Mbadi to consult on reviewing civil servants' salaries after uproar

Members of the National Assembly have tasked Treasury Cabinet Secretary John Mbadi with engaging Attorney General Dorcas Oduor to assess the feasibility of amending or abolishing the one-third salary rule.

This follows growing concerns from civil servants who claim their take-home pay has dropped below a third of their net earnings due to numerous deductions.

The Public Accounts Committee (PAC) reached this decision during a session held on Tuesday, where they examined the burden of multiple deductions on employees' salaries.

In addition, the committee plans to summon the Treasury CS to provide clarification on why a significant number of civil servants are receiving less than the legally stipulated portion of their salaries.

Many of these workers reportedly have over two-thirds of their basic income committed to loan repayments and statutory deductions, exceeding the legal threshold.

The Public Accounts Committee (PAC) linked the sharp decline in take-home pay to new deductions implemented under President William Ruto’s administration, such as the Housing Levy, contributions to the Social Health Authority, and the updated National Social Security Fund (NSSF) rates.

During the meeting, the committee chairperson, Tindi Mwale (Butere), raised concerns about the increasing number of government departments violating the Employment Act of 2007, which is designed to safeguard workers from being left with insufficient income after deductions.

Section 19(3) of the Employment Act, 2007, prohibits employers from deducting more than two-thirds of an employee’s basic salary.

''The law is no longer practical due to multiple tax deductions that have eroded workers' earnings,'' Mwale stated.

In recent months, civil servants have witnessed a noticeable reduction in their take-home pay, attributed to several mandatory deductions.

These include a 1.5% levy on gross salary for the Affordable Housing Programme, a 2.75% deduction for the newly introduced Social Health Insurance Fund (SHIF), as well as increased contributions under the revised NSSF Act.

Lugari MP Nabii Nabwera raised concerns over the matter, cautioning that failure to resolve it could lead to recurring issues in audit reports.

"This committee has urged the National Treasury to consult with the Attorney General on a viable solution, particularly in light of the implementation of the NSSF Act, SHIF, and the housing levy. If no action is taken, this will persist as an audit red flag," Nabwera remarked.

In a show of unity, lawmakers emphasized that civil servants should not bear the brunt of these changes, especially when the circumstances are beyond their control.

"These workers are not responsible for the predicament they find themselves in," asserted Funyula MP Wilberforce Oundo.

“It was Parliament that enacted these burdensome taxes. If accountability is to be sought, it must begin with the very MPs who enthusiastically endorsed the laws as they passed through the House.”

Data from the Integrated Personnel and Payroll Database (IPPD) for June 2023 revealed a troubling trend: 4,082 government employees were taking home less than a third of their basic pay.

This violates Section C1(3) of the Human Resource Policies and Procedures Manual for the Public Service (May 2016 edition), according to official documentation.