Nairobi — The Salaries and Remuneration Commission (SRC) has frozen the review of basic salary structures, allowances, and benefits for all public servants including the President, Deputy President, and Members of Parliament.
The salary review freeze will apply for the financial year 2021/22 to 2022/23.
SRC Chairperson Lynn Mengich made the announcement on Thursday while releasing the outcome of the third public sector remuneration and benefits review cycle where she also announced that no additional funding will be provided for implementation of the job evaluation results in the next two years.
The third review cycle is for the period 2021/22 to 2024/25.
"Annual salary notch adjustments in existing salary structures, asset or advised by SRC, will continue to be applied within budget allocation," she added.
Mengich said the decision was informed with the current wage bill ratio and the need to channel more funds for investment in the strategic priorities of the government to jumpstart the COVID-19 ravaged economy.
"To release resources for investment In the priority areas, the wage bill to revenue and to GDP rations must take a trajectory towards achievement of the target ratios," the commission said.
The stay on basic salary review, Mengich said is expected to reduce the wage bill to revenue ratio to 48 per cent from the average 51 per cent witnessed over the past years.
The wage bill to ordinary revenue ratio in the financial year 2019/20 and 2018/19 stood at 51.7 per cent and 48.1 per cent respectively against the 35 per cent target.
The total wage bill for 2019/20 and 2018/19 stood at Sh827 billion and Sh795 billion respectively
The government will, in turn, utilize Sh82 billion over the four-year period cycle to implement the outcome of the third remuneration and benefits cycle.
SRC also directed all public sector institutions to place all jobs within the existing salary structure for the next two years pending a review of the measure.
"Public sector institutions may implement job evaluation results, by placing jobs in their rightful job evaluation grading, within existing salary structures and approved budgets, subject to confirmation to SRC that the funding is provided for in the current budget," Mengich added.
The Mengich-led commission will review the situation after two fiscal years "based on the status of the economy and guide on the way forward for the remaining period of the third remuneration and benefits cycle."