Relief for civil servants as SRC moves to address heavy salary deductions
The Employment Act, under Section 19(3), limits payroll deductions to a maximum of two-thirds of an employee’s salary.
Thousands of government employees could soon get relief from heavy deductions on their payslips after the Salaries and Remuneration Commission (SRC) confirmed that a pay review is underway to protect civil servants from earning below the legal threshold.
Appearing before the Public Accounts Committee (PAC) of the National Assembly, SRC Chairperson Sammy Chepkwony said the commission is working to ensure compliance with the one-third basic pay rule, which requires employees to retain at least one-third of their basic salary after deductions.
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This follows a report by Auditor-General Nancy Gathungu that raised concerns about public institutions violating this law year after year.
“Compliance with the one-third basic pay rule is a priority, and actively working with you. We aim to correct this in the fourth remuneration review cycle, which is already in the works,” Chepkwony told committee members on Thursday.
The Employment Act, under Section 19(3), limits payroll deductions to a maximum of two-thirds of an employee’s salary.
This legal protection is also supported by the Public Service Commission’s Human Resource Policies, which state that workers must not be left with less than a third of their pay.
Despite these clear provisions, many government agencies have failed to follow the law, and the SRC has not previously taken visible action.
According to the Auditor-General’s report, the situation has worsened following the introduction of mandatory deductions under the Affordable Housing Act and the Social Health Insurance Act (SHIA).
The Affordable Housing Levy became partially operational on March 21, 2024, requiring both the employee and employer to contribute 1.5 per cent of the gross salary each.
SHIA, which replaced the National Health Insurance Fund (NHIF) with the Social Health Insurance Fund (SHIF), demands a 2.75 per cent monthly contribution from all residents based on their gross income, with a minimum payment of Sh300.
These additional deductions have pushed the total amount taken from civil servants’ salaries beyond the legal limit, leaving many struggling financially. Parliament has now demanded urgent reforms to protect workers’ rights and restore lawful deductions.
Committee members Marianne Kitany and Nabii Nabwera criticised the SRC for what they described as a failure to act, saying the commission had ignored audit findings and allowed civil servants to suffer.
The MPs insisted that the SRC must intervene immediately to stop public employers from breaking the law.
In response, Chepkwony maintained that the commission is already working on the issue through its ongoing fourth remuneration review cycle, which will look into all salary structures and propose changes that restore compliance with the one-third rule.
The committee has asked SRC to prioritise the matter and provide a clear timeline for the review process, warning that continued inaction could lead to deeper financial distress among civil servants.
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