Government formalises 12% minimum wage increase for workers
Government formalises 12% minimum wage increase for workers
The government has formalised wage adjustments for all Kenyan workers following the signing of legal notices implementing a 12 per cent increase in both general and agricultural minimum wages.
Labour Cabinet Secretary Alfred Mutua on Thursday, May 7, announced that the new wage changes will directly affect employee earnings across various sectors, with the new structure expected to be gazetted soon.
“Today, I have signed two legal notices effecting a 12% increase in General Wages and 15% in Agricultural workers’ pay in line with Labour Day,” Mutua said in a statement.
According to Mutua, the move is part of the government’s broader plan to improve workers’ incomes and cushion Kenyans from the rising cost of living.
The CS stated that the revised wage structure will guide employers in reviewing salaries and updating payroll systems under their human resource policies, leading to pay slip changes.
“These adjustments set new minimum wages across various sectors and will guide the Private Sector as they review staff remuneration under their H.R. policies,” Mutua stated.
Upon gazettement of the new wages, employers in both private and public sectors are expected to adjust their employees’ salaries to reflect the new wage structures.
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For instance, if an employee is currently earning Ksh50,000, a 12 per cent wage increase means they will receive an additional Ksh6,000, raising their salary to Ksh56,000 after the adjustment.
Mutua’s announcement follows President William Ruto’s May 1 Labour Day directive, and the notices have been forwarded to the Attorney General’s Office for gazetting.
During the national event held in Vihiga County, the Head of State announced a 12 per cent increase in general wages for Kenyan workers and a 15 per cent increase for agricultural workers.
There have been divided opinions over the proposed salary increase, with the Federation of Kenya Employers (FKE) saying employers will only adjust minimum wages and not general wages, despite Ruto’s directive.
FKE Chief Executive Officer Jacqueline Mugo said on May 4 that changes will follow existing laws on minimum wages, dismissing claims that the 12 per cent increase applies to all workers.
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