Explore non-financial incentives for workers

DNSenateEducation1602c

Salaries and Remuneration Commission (SRC) Chairperson Lyn Cherop Mengich at a past function on February 16, 2023. PHOTO | LUCY WANJIRU | NMG

Under the tough economic times of soaring public debt and high cost of living, the plan to increase the salaries of civil servants is both complex and contentious.

The government has allocated Sh17.7 billion for the pay increment in the financial year starting July 1 but did not provide the timeline within which the Treasury and the Salaries and Remuneration Commission (SRC) would announce the new pay.

Treasury Principal Secretary Chris Kiptoo told Parliament that the allocation was made following a job evaluation by the SRC.

On the one hand, the pay review would compensate for the high cost of living as essential goods prices have skyrocketed and the looming higher taxes.

At the same time, adequate pay can motivate workers to remain in their positions, reducing turnover rates and maintaining institutional memory.

But, the burden on taxpayers and the struggle to tame the bloated public wage bill that now consumes more than half of the total revenues and hurting development spend cannot be gainsaid.

The government is also hard-pressed for resources to finance its essential projects as revenue collection dwindles.

Therefore, a comprehensive strategy that balances rewarding civil servants, addressing the financial constraints, and maintaining fiscal responsibility must be sought.

As a priority, wasteful spending, such as on travel and meetings at luxury hotels must be tamed. The government can explore non-financial incentives such as flexible work plans and recognition.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.