New Payslip Taxes for TSC Teachers and Civil Servants Starting January 2025.
Teachers and civil servants are set to experience increased financial strain as the government plans to introduce additional deductions on their payslips starting January 2025.
This move follows a proposal by the Treasury, led by CS John Mbadi, to reintroduce clauses from the rejected Finance Bill 2024 aimed at boosting revenue collection.
One of the proposed taxes is the Public Officers Medical Scheme Fund, a statutory deduction applicable to public servants, including teachers. This will be the third medical scheme for teachers, adding to the existing AON Minet and Social Health Insurance Fund (SHIF) covers.
The newly proposed Public Officers Medical Scheme Fund is designed to finance a specialized medical scheme for public officers. This scheme will complement the existing social health insurance benefit package provided under the Social Health Insurance Act.
Deduction Rates and Approval Process
Although the exact percentage of the deduction remains unclear, sources indicate a potential 2% salary deduction. The National Assembly is expected to finalize and approve the proposal by December 2024, enabling its rollout by January.
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In line with constitutional requirements, the Treasury has initiated a public participation exercise this November. The public is invited to submit comments, inputs, or memoranda to the Principal Secretary of the National Treasury. Submissions can be delivered via:
- Postal Address: P.O. Box 30007-00100, Nairobi
- Physical Delivery: National Treasury Building, Nairobi
- Email: [email protected], with a copy to [email protected]
The submission deadline is 18th November 2024 at 5:00 p.m.
Public Consultations and Stakeholder Engagement
To gather feedback, the Treasury has organized in-person consultations on 20th November 2024 as per the schedule below:
| Stakeholder | Meeting Date | Time |
|---|---|---|
| State Department for Public Service | 20th November 2024 | 10:00 a.m. |
| Civil Servants Union | 20th November 2024 | 10:00 a.m. |
| Teachers Service Commission (TSC) | 20th November 2024 | 10:00 a.m. |
| Public Service Commission | 20th November 2024 | 10:00 a.m. |
| Salaries and Remuneration Commission | 20th November 2024 | 10:00 a.m. |
| Social Health Authority | 20th November 2024 | 10:00 a.m. |
| Members of the Public | 20th November 2024 | 10:00 a.m. |
These consultations will take place at the National Treasury’s 5th Floor AGD’s Boardroom. Invitation letters for the meetings will be delivered to registered stakeholders in advance.
Role of Unions and Civil Servants
Union representatives, such as KNUT and KUPPET, are expected to facilitate civil servants’ participation in the process.
This inclusion ensures that teachers and other public officers can express their concerns about the proposed deductions and the broader implications of the new medical scheme.
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New Payslip Taxes for TSC Teachers and Civil Servants Starting January 2025
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