Civil servants bonuses and perks cost government Sh4.2bn
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SRC says bonuses, and pay increments for civil servants have ballooned the wage bill costing the government Sh4.2bn
SRC says bonuses, and pay increments for civil servants have ballooned the wage bill costing the government Sh4.2bn.
In spite of an increasing demand for greater pay from government employees, bonuses, pay increases, and Collective Bargaining Agreements (CBAs) cost the government Sh4.27 billion in the fiscal year that ended in June.
The SRC revealed that it had approved salary increases, requests for bonuses and allowances, and CBAs, all of which had driven up the wage bill and exceeded the Sh2.5 billion increase seen in the previous financial year.
This increased pressure on the exchequer came as the government was promoting a policy of fiscal consolidation.
The data analysis reveals that of the Sh1.43 billion (or 34 percent) that was paid in bonuses and rewards during the final three months of the previous administration, Sh1.29 billion was for salary reviews and Sh1.2 billion was for allowances and benefits.
“The total value of advice for the financial year 2022/2023 amounted to Sh4.27 billion, representing 52.26 percent of the value of requests received,” SRC says in the bulletin.
According to SRC, demands from employees for raises due to inflation totaled Sh8.17 billion in the just-ended fiscal year.
The sharp rise in take-homes came at a time when the top-performing civil servants started getting cash bonuses under a new public service reward scheme.
Government employees, including teachers, doctors, and nurses, who accomplish annual goals established by performance contracting committees are given cash awards in addition to their salary and allowances under the reward program, which was announced by the Public Service Commission (PSC) two years ago.
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The Performance Management Regulations 2021 paved the way for the formation of an awards scheme targeting employees who exhibit ethical practices and also come up with innovations that lead to improved public service delivery.
Civil servants have upped calls for salary increments amid a spike in the cost of living that has significantly hurt households’ spending power.
Inflation—a measure of the cost of living— has since last year held above seven percent, prompting a heightened push from the over 954,900 civil servants for higher pay.
The Treasury has been struggling to tame the bloated public wage bill that now consumes over half of the total revenue, impeding spending on development projects.
The government is currently hard-pressed for resources to finance its essential projects in the wake of harsh economic times that have impacted revenue collection performance amid growing foreign debt servicing obligations.
The public wage bill was projected to hit Sh1.1 trillion in the year that ended in June. SRC further expects the bill to grow to Sh1.17 trillion in the current financial year.
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