SRC Freezes Salary Increment for Teachers and Other Public Officers: On Thursday, July 18, the Salaries and Remuneration Commission (SRC) announced a freeze on all salary increments. The government has put all salary reviews for all public officers for the 2024–2025 financial year on hold.
This decision stemmed from financial constraints after President William Ruto declined to sign the Finance Bill, 2024, into law.
Financial Constraints and Deferred Salary Review
The SRC explained that the government lacks an allocated budget for the recommended remuneration and benefits. This led to the deferment of the salary review, which was supposed to take effect in July 2024.
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Because of these financial challenges, the SRC has begun discussions with the National Treasury. The discussions are to ensure the fiscal sustainability of the public compensation bill.
Additionally, there will be no extra funding for implementing the job evaluation results in the 2024–25 financial year. However, as the SRC advised, annual salary notch adjustments within the current structures will continue within budgetary constraints.
Impact on CBAs for Teachers and Healthcare Workers
This decision significantly impacts teachers and healthcare workers. The two giant groups recently signed Collective Bargaining Agreements (CBAs) with the government.
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Public service institutions with CBAs are advised to engage the respective trade unions about SRC’s decision and its implications.
Future Salary Review and Fiscal Sustainability
Regarding the timing of a future salary review, the SRC informed public servants that the situation would be monitored. After close monitoring, a review would be considered. However, that is subject to the availability of funding, as advised by the National Treasury.
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This freeze follows SRC’s recent halt of the upward salary review for all state officers. The aim is to ensure the affordability and fiscal sustainability of the public wage bill. This was after considering the current economic realities, a reduced budget, and existing contractual commitments.
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