Treasury spreads civil servants pay rise over 4 years

The National Treasury has clarified that it will spread the proposed salary increment for civil servants over a four-year period.

A memo from cabinet had indicated that the government’s over 600,000 employees would get a Sh100 billion pay rise.

But according to Treasury Cabinet Secretary Henry Rotich the salary increment will be done in four phases starting in the 2017/2018 financial year.

According to Mr Rotich Sh25 billion will be allocated for additional salaries.

“The Sh100 billion quoted will be implemented in four phases, about Sh20 billion to Sh25 billion per year starting July 2017,” Mr Rotich clarified via text message.

The government currently has a wage bill of Sh543 billion, inclusive of pension payments.

The government has been looking to cut down its ballooning wage bill but a series of civil unrest has forced the government to appraise all civil servants at once.

Doctors have been on strike for the past 68 days demanding among other things, a salary increment as well as hiring of additional staff.

The Salaries and Remuneration Commission (SRC) has already created new job structures, which will help bridge the gap between the highest and lowest-paid earners.

In the new pay structure, the lowest employee will earn a minimum of Sh14,442 while the starting salary for those in job group E4 will be Sh292,765.

At the same time the SRC is working towards eliminating hefty allowance paid out to civil servants, a move expected to contain the wage bill.