SRC-led wage bill conference kicks off as govt sets focus on 35:65 target » Capital News

NAIROBI, Kenya Apr 15 — The Third National Wage Bill Conference is underway in Nairobi with the Salaries and Remuneration Commission (SRC) seeking to mobilize efforts towards the attainment of the 35 per cent wage bill to revenue ratio.

The three-day conference that kicked off on Monday will seek to generate consensus on reducing the national wage bill to 35 percent by 2028.

SRC Chairperson Lyn Mengich said the commission is committed to implementing measures that will help tame the current wage bill which she said was threatening the nation’s economic growth.

Mengich revealed that the commission has so far saved Sh17.3 billion through streamlining the framework on allowances in the public sector adopted in the last four years.

“Through streamlining the allowances framework developed SRC has saved Sh17.3 billion over four years by implementing phases one and two of the framework,” she revealed.

Mengich emphasized the need for the commission to lower the wage bill that currently stands at 47 percent contrary to the legal requirement of 35 per cent.

“The Public Finance Management Act 2012 and regulations 2015 set a clear threshold of the wage bill to revenue ratio for the two tires of government that states that expenditure on compensations and employees benefits should not exceed 35 percent of the total revenue collected,” she said.

During the wage bill conference held in 2019, the commission developed and adopted various frameworks including productivity measurement that sought to streamline allowances in the public sector as measures to tame the nation’s wage bill.

In the 2021/22 Financial Year, the wage bill-to-revenue ratio dropped to 47.04 per cent from 51.4 per cent in the 2017/18 Financial Year.

The 2019 framework required public institutions from both the National and county governments to develop strategies and action plans to achieve the 35 percent wage bill-to-revenue ratio.

The Third National Wage Bill Conference brings together officials from both the public and private sectors, civil society and non-profit organizations.

About The Author