Decision On 1.5% Housing Levy Deductions. Since the court cases invalidated the proposed salary increase for all federal personnel beginning on July 1, 2023, there has been confusion and fear about what would happen to teachers’ paystubs at the end of July 2023.
But now that it has been established that the legal dispute concerning the Finance Act of 2023’s execution has no bearing on the act’s actual implementation, the situation has been resolved.
The rumors regarding the teachers’ July payslips have been terminated as a result of this. The commission makes decisions in close consultation with the Treasury.
Therefore, by the time it announced that it will adjust civil servant salaries upwards, it had already received approval from the Treasury to carry out the increment.
Their advice is primarily based on research regarding the current state of the economy and inflation.
The SRC is the designated organization tasked with advising the government on issues pertaining to public servant pay and benefits. Most of their advise is supported by research.
This money intended for the salary boost was received by the TSC last month in preparation for the implementation in July because the TSC receives funding far in advance for the salaries and allowances of its members.
Decision On 1.5% Housing Levy Deductions
Because of this, the wage increase for the more than 300,000 instructors who are employed by TSC is included in the salaries for July. The teacher unions raised doubts about the standards applied to determine that percentage.
They were informed that since the government was handling the increment through SRC to protect all civil employees against inflation, their opinion was not needed.
The teachers unions persisted in challenging the standards applied to get that proportion. The country was still recuperating from the COVID-19 epidemic when this increase was originally planned to go into effect in the fiscal year 2021–2022, therefore it was delayed.
The Treasury Department also told the SRC to wait to make any changes until the current fiscal year.
However, the increase in pay will be phased in over four years. Teachers will see a 7% pay increase for the fiscal year 2023–2024 on their payslips in the first year, which starts this July; in the second year, they will receive 8% for the fiscal year 2024–2025.
In the third and fourth years, they will receive 9% and 10%, respectively; and in the fifth and final year, they will receive 10% for the fiscal year 2026–2027.
It’s crucial to remember that the court order stopping the state from implementing the Finance Act of 2023 won’t be heard or resolved until after the housing levy deductions have been put into place.
Since then, the Kenyan attorney general has challenged the high court’s ruling in the case, and this coming week is when both the appeal hearing and the case’s decision are expected to start.
Decision On 1.5% Housing Levy Deductions