MPs probe deductions leaving civil servants with less than a third of their earnings

Members of Parliament have launched an investigation into why thousands of civil servants are taking home less than a third of their net salaries, citing significant deductions that many claim violate regulations on salary reductions.

The National Assembly’s Public Accounts Committee (PAC) has raised concerns over the increasing number of government departments failing to adhere to a regulation that prohibits employers from deducting more than two-thirds of an employee’s basic pay.

The parliamentary watchdog committee will summon the National Treasury to explain why thousands of public servants are left with less than a third of their earnings. Many have committed more than the legally allowed two-thirds of their basic salary to statutory and loan deductions.

PAC has linked the drastic reduction in net income to additional deductions introduced under President William Ruto’s administration. These include the 1.5 per cent Housing Levy, 2.75 per cent Social Health Authority contributions, and increased National Social Security Fund (NSSF) rates.

Butere MP Tindi Mwale, who is the Committee chairperson, expressed concern over the widespread violation of Section 19(3) of the Employment Act, 2007, which prohibits employers from deducting more than two-thirds of a worker’s basic pay.

“The law is no longer practical due to multiple tax deductions that have eroded workers’ earnings,” Mwale said.

Public servants have raised complaints over their shrinking payslips in recent months, with deductions such as the Affordable Housing Levy, the Social Health Insurance Fund (SHIF), and revised NSSF contributions drastically slashing their take-home pay.

The committee has now instructed the National Treasury to consult with Attorney General Dorcas Oduor on the feasibility of either scrapping or reviewing the one-third salary rule in light of the current tax regime.

The issue emerged during a PAC session with Correctional Services Principal Secretary Salome Beacco, who appeared before the committee to respond to audit queries.

Lugari MP Nabii Nabwera warned that unless the matter is urgently addressed, it will remain a recurring issue in audit reports.

“This committee has asked the National Treasury—given the coming into effect of the NSSF Act, SHIF, and the housing levy—to engage the Attorney General for a way forward. If not addressed, this matter will remain an audit concern,” Nabwera said.

“We need a definitive ruling on this issue. Given the current deductions, the one-third rule is clearly untenable.”

Funyula MP Wilberforce Oundo echoed the concerns, insisting that civil servants should not be penalised for circumstances imposed on them by lawmakers.

“These employees are not the authors of their misfortune. It is Parliament that passed these punitive taxes. If blame is to be placed, it lies squarely with MPs who sang ‘hallelujah’ as the laws sailed through,” Oundo said.

A review of the Integrated Personnel and Payroll Database (IPPD) for June 2023 revealed that 4,082 government officers received less than one-third of their basic pay, an outright breach of Section C1(3) of the Human Resource Policies and Procedures Manual for the Public Service (May 2016 edition).

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• Affordable Housing Levy
• civil servants
• salary deductions
• NSSF deductions
• National Assembly’s Public Accounts Committee
• MPs probe deductions leaving civil servants with less than a third of their earnings
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