Salaries and Remuneration Commission(SRC) to harmonise allowances and benefits paid in the public sector if the draft allowances policy developed by the commission is anything to go by.
SRC chairperson, Lyn Mengich said that the commission aims at minimizing disparities in gross remuneration package with the ultimate aim being to cap allowances at 40 per cent of basic pay.
Mengich said the absence of a policy framework to guide the determination and payment of allowances in the public sector, has seen the country’s wage bill more than doubled in a span of five years.
“The wage bill has been increasing over the years, rising from Ksh 434.9 billion in 2012/13 to Ksh 827 billion in 2019/20. The expenditure on allowances rose from Ksh 263.3 billion in 2015/16 to Ksh 322.5 billion in 2018/19.” Mengich revealed.
She revealed that the new cycle may take effect six months after June, a time when the commission projects to have completed the review.
“Everybody will be affected. Some will impact more on other sectors of the employees. New employees will be affected where an allowance is being abolished. If provided for in a contractual obligation, it will not affect immediate staff enjoying that benefit,” she said.
She disclosed that a recent study by the commission showed that a total of 247 allowances are currently being paid to public officers, accounting for 48 per cent of the total wage bill.
“Different institutions pay allowances using different justifications, eligibility criteria, rates and modes of payment.” She said
According to Mengich, the SRC draft allowances policy is aimed at streamlining the management of allowances to promote transparency, accountability, equity, and fairness of pay.
In the draft policy, SRC wants all allowances and benefits in the public sector set and regularly reviewed.
The commission is also out to rid the public sector of what it termed as double compensation. To do this, SRC says the total remuneration package will not exceed the relative worth of a job, thus, allowances and benefits shall not be paid for purposes that are already compensated in the basic salary.
What’s more, allowances will be categorized only as House Allowance; Commuter Allowance; Job-Related Allowances; Task-Related Allowances; and Labour Market Adjustment Allowances.
SRC says the Commission is currently undertaking job evaluation in the public sector, which will systematically and objectively determine the relative worth of jobs.
The salary surveys are expected to provide information on current compensation levels and trends, including policies and practices to inform the Commission in setting, reviewing, and providing advice on remuneration and benefits for State officers and other public officers.
Those present were; Commissioners Margaret Sawe, Mumbua Munyao, John Monyocho, and CEO Anne Gitau.