Atwoli pleads with parliament to withdraw the Unemployment Insurance Bill ‘Workers payslips are depleted’
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Atwoli opposes the proposed Unemployment Insurance Bill that seeks more tax deductions on workers
Atwoli opposes the proposed Unemployment Insurance Bill that seeks more tax deductions on workers.
Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli has asked Members of Parliament (MPs) not to introduce more Bills that seek more tax deductions on workers.
Speaking on Saturday at a funeral in Kakamega County, Atwoli said the the new bill will make life worse for many workers who are already struggling due to the high taxes imposed by the government.
Atwoli asked Shinyalu to reconsider since Kenyans are already struggling to survive the lean times.
He stated that the introduction of the additional taxes will setback the majority of workers who are already experiencing numerous deductions on their payslips.
Atwoli stressed that until the government figures out a way of spurring the country’s economy, MPs should refrain from proposing additional burdens to Kenyans.
“I want to plead with Shinali to abandon anything related to the employment levy because people’s payslips are being deducted heavily. We don’t have anything left on our payslips,” Atwoli said.
“If we have not yet become economically viable as a country we cannot be able to grow our economy. Kenya Kwanza is now putting a mechanism into place to see whether it can spur economic growth. But before that let us not add another burden to Kenyans.”
The Unemployment Insurance Bill which seeks to provide benefits to employees who become unemployed, proposes that employees contribute 1% of their salaries while the employer pays 1% per cent.
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“The objective of the legislative proposal is to provide for the payment of unemployment benefits to employees who become unemployed,” part of the bill read in parts.
Shinali while appearing before the Budget and Appropriations Committee on Thursday said the bill will cushion employees or their kin when they lose their jobs.
“The object of the Fund is to provide benefits to employees who become unemployed or their respective beneficiaries in order to cushion them against harmful socio-economic effects of unemployment,” he explained.
He noted that the money to be contributed to the proposed insurance bill will be paid by the employer and the employees, appropriations from the National government, donations, grants, and funds from counties.
The draft Bill also proposes the establishment of the Unemployment Insurance Authority as a corporate body with a Board comprising a chairperson and nine other members.
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