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Daily Nation : February 13th 2014
4 | National News SALARY CRISIS DAILY NATION Thursday February 13, 2014 WAGE BILL | Researchers push for salaries among government employees to be harmonised amid reports that the wage bill poses Cabinet Secretaries, who are the highest paid, take home 100 times more than the lowest-earning civil servants, according to Kippra survey BY SAMUEL SIRINGI email@example.com AND BORN MAINA @Bornmaina firstname.lastname@example.org showing that the highest paid cadre earn almost 100 times more than the lowest. According to the report to be A released today, the highest paid civil servant — mainly Cabinet Secretaries at job group V — earns a mean basic salary of Sh737,332, while the lowest paid — in Job Group A — earns a basic salary of Sh7,701. The report, which further shows that some constitutional office holders could be earning some allowances illegally, is an indictment on the government’s pay structure that has been blamed for the rising public wage bill. Getting out of hand Last week, the Salaries and Re- muneration Commission said the public wage bill was getting out of hand and could pose a challenge to Kenya’s ambition to become an industrialised nation by 2030. “There is need to compress civil service wages by reducing the difference between the highest and lowest paid,” says the Public Private Sector Wage Differentials in Kenya report, which was compiled by the Kenya Institute of Public Policy Research and Analysis. The report proposes the pro- portion of basic pay to one’s total pay be no less than 75 per cent. If the proposal is adopted, top-level civil servants will lose their lucrative pay because allow- new report has exposed shocking salary disparities between civil servants, Public service hit by massive salary Sh1.6m The amount that the highest paid public servant takes home in salary and allowances Sh16,423. With the allowances added, the highest paid civil servants in Job group V take home a mean gross salary of Sh1.6 million, while the lowest paid is in Job group B and earns a mean gross salary of only Sh24,906. Those earning more than Sh100,000 as mean gross salary are in Job group J and above. Those in job group V take home Sh99,188 as house allowance and Sh107,143 as extraneous allowance. THE FINDINGS JOB GROUP Basic Salary House Medical Commuter Transport Entertainment Extraneous Acting Responsibility Hardship Special House Special Duty Special Salary Uniform Transfer Leave travel Non- Practicing Mean total allawances Mean gross salary 34,188 Allowence as proportion of gross salary Entertainment allowance They also enjoy Sh469,156 A 7,701 2,499 375 - - V 737,332 99,188 131 - 12,960 44,000 104,000 3,000 107,143 - 2,750 53,293 917 - - - - - 3,986 - - - - - 469,156 - - - 13,000 26,486 889,912 1,627,244 77.5 54.7 ances will either be eliminated, merged or redesigned to reduce the ballooning wage bill and inequality. “The SRC should undertake a comprehensive review of all allowances with a view to standardising them or including them as part of basic pay,” the report says. FILE | NATION Salaries and Remuneration Commission chairperson Sarah Serem (right) addresses a news conference in Nairobi. A new report has revealed massive salary disparities in the public sector and has recommended that she harmonises them to reduce disparities. Civil servants earn 16 differ- ent allowances, although most of them are enjoyed by top staff including principal secretaries and directors. The payments include com- muter, housing, medical, transport, entertainment and uniform allowances. Some job groups are entitled to more allowances than others, benefiting the higher and middle job cadres, the report says. The report, which also exposes disparities among staff working in the same grades, recommends that some lower cadre grades in the public service be merged or redesigned. Lower earners have been disadvantaged in distribution of allowances, with individuals in the lowest job group earning the least, according to the findings. Some allowances are paid selec- tively, many times constituting a high proportion of gross salary. The allowances are compara- tively attractive for the higher cadres of job group R and above. Staff in Job group V take home Sh889,912 as allowances, while those in Job group B get only in special salary, compared to the Sh165 given to those in job group H. Entertainment allowance in the civil service is a preserve of those in job group N and above. Employees in this group receive an entertainment allowance of Sh1,500 while those in job group V receive a monthly allowance of Sh104,000 for the same purpose. Those between job group A and M do not get any entertainment allowances. Public servants, especially those in higher job groups, earn higher basic salaries and allowances combined when compared with staff of the private sector, according to the findings. Those working in state cor- SMS ‘BREAKING NEWS’ to 20667 porations and constitutional commissions earn even higher salaries. “However when civil service salaries and basic salary is compared to private sector, the wage premium is in favour of the private sector,” the study says.
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