LIAM KENT: Let's support SRC’s initiative to tame public wage bill

The public sector wage bill comprises wages, salaries, allowances and other benefits awarded to all public sector employees as compensation for services delivered.

A wage bill that does not match economic and revenue growth means that there is less money to devote to development projects and the provision of social services such as medical care and education.

In recent years, the public sector wage bill has shown a positive trend.

This is due to revenue growth and several initiatives such as job evaluation of all state and public officer jobs, salary structures for state officers and public officers.

Other initiatives are public sector remuneration and benefit policy, four-year collective bargaining agreements, job grading structures based on the job evaluation results among others, that have been put in place by the Salaries and Remuneration Commission in collaboration with stakeholders.

However, more needs to be done to achieve a wage bill of 35 per cent of ordinary revenue, as per the PFM regulations (2015) and a wage bill to GDP of 7.5 per cent, in line with the average for developing countries.

The public sector wage bill in Kenya has not achieved the requirements of PFM regulations (2015).

This is due to the expansion of services to the citizenry for development goals, push for higher pay by public service employees and low productivity that leads to slow growth of revenue and the general economy.

There is therefore a need to join hands and help SRC in trying to reduce the already ballooned wage bill, through the initiatives that have been put in place.

A high public sector wage bill crowds out spending on development and negatively affects the government’s ability to render services.

 

Edited by Kiilu Damaris