Public Servants’ Salaries in Crisis as 47,300 Payslips Defy One-Third Rule.
A recent report presented to Parliament on Wednesday, February 26, 2025, has unveiled a worsening financial crisis among public sector employees.
The findings indicate that approximately 47,300 government workers take home less than a third of their basic salary, violating the legally mandated threshold.
The shrinking net salaries have been attributed to increased deductions from payslips. Contributions to the Provident Fund, Union fees, the National Social Security Fund (NSSF), the Social Health Insurance Fund (SHIF), and the Housing Levy have all significantly reduced disposable income. Many public servants are already burdened with loan repayments, further compounding the crisis.
Nominated Senator Beatrice Ogolla has urged immediate intervention to address the escalating issue of public servants earning below the legally required threshold.
She raised concerns in the Senate under Standing Order 53(1), seeking clarification from the Standing Committee on Labour and Social Welfare regarding the heavy financial strain imposed by new tax policies and mandatory deductions.
Ogolla informed the Senate that the increasing prevalence of salaries falling below the one-third rule violates the Human Resource Policies and Procedure Manual.
She cited recent tax adjustments as a major contributing factor, pointing specifically to the 1.5% Affordable Housing levy and the 2.75% Social Health Insurance Fund deduction. These changes, she argued, have further worsened financial hardships for government employees.
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Dire Consequences of Excessive Deductions
The Senator emphasized that while these deductions serve social welfare objectives, they have inadvertently pushed public servants into financial turmoil. She warned that many employees now face classification as the ‘working poor,’ despite being formally employed.
Ogolla pointed out that this situation contradicts Section C.1(3) of the 2016 HR Manual, which stipulates that employees should retain at least one-third of their basic salary.
Calling for urgent intervention, Ogolla questioned the Ministries of Labour and Public Service on the measures in place to protect government employees from the financial and psychological repercussions of these deductions.
She stressed the need for policy reviews to align with current tax realities and ensure that essential workers, including teachers and police officers, do not suffer disciplinary action due to unavoidable financial constraints.
Public Servants’ Salaries in Crisis as 47,300 Payslips Defy One-Third Rule.
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