President Uhuru Kenyatta has raised the minimum wage by 18 per cent for all workers across the country.
Uhuru also said taxable bonuses and over time has been increased to Sh100,000; therefore those below the mark will be non-taxable.
"My government is concerned with the large number of Kenyans looking for jobs and those struggling to provide for their families, thus my government has offered 18 per cent increase in minimum wage," he said on Monday.
He spoke during Labour Day celebrations at Uhuru Park.
The President added that workers earning a minimum salary of Sh13,475 will no longer pay taxes.
During his speech, Cotu secretary general Francis Atwoli had said workers would not accept anything lower than 22 per cent.
Read:
Uhuru asked workers to be cautious when seeking foreign employment and to ensure they do so through approved recruitment agencies.
"We have streamlined the registration and management of foreign recruitment agencies and I urge all Kenyans to use approved agencies and ensure they register with the Kenyan embassy in the county they are in," he said.
Among those who attended Saturday's fete are First lady Margaret Kenyatta, CSs Raychelle Omamo (Defence), Phyllis Kandie (Labour), Jacob Kaimenyi (Lands) and Fred Matiang'i (Education).
Nairobi Governor Evans Kidero and Senator Mike Sonko also addressed the crowd.
