TSC’s 1.5% Housing Levy Remains Amidst July Salary Increment

TSC’s 1.5% Housing Levy Remains Amidst July Salary Increment

TSC’s 1.5% Housing Levy Remains Amidst July Salary Increment. Despite legal challenges thwarting the proposed salary increases for all civil servants starting July 1, 2023, there has been significant concern and speculation about what teachers’ payslips would reflect at the end of July.

This uncertainty has now been resolved: the court ruling on the implementation of the Finance Act 2023 does not impede the Act’s execution itself, thereby dispelling circulating rumors about teachers’ July payslips.

The decision to adjust civil servants’ salaries upwards, including those of teachers, was made following comprehensive research and consultations between the commission and the treasury. Before announcing the salary increment, the commission had already secured approval from the treasury.

The Salaries and Remuneration Commission (SRC), the body responsible for advising the government on public servants’ salaries and allowances, bases its recommendations on extensive research.

Funds allocated for the salary increases had already been disbursed to the Teachers Service Commission (TSC) in advance, ensuring preparedness for the implementation in July.

Consequently, over 300,000 teachers under the TSC will see the salary increment reflected in their July payslips.Teacher unions, questioning the basis for the salary increment percentage, were informed that their input was unnecessary as the increment decision was made by the government through the SRC, aimed at cushioning all civil servants against inflation.

These unions have continued to express concerns over the criteria used for the salary increase determination.The salary increment, initially planned for the 2021/2022 fiscal year, was deferred due to the nation’s recovery from the COVID-19 pandemic.

The Treasury Department had instructed the SRC to delay any revisions until the current fiscal year. Now, the salary increase will be phased over four years. Beginning this July, teachers will receive a 7% pay rise for the 2023/24 fiscal year, followed by 8% for 2024/25, 9% for 2025/26, and finally, 10% for 2026/27.

It’s crucial to note that the court injunction preventing the enforcement of the Finance Act 2023 will not be resolved before the housing levy deductions are implemented.

The Attorney General of Kenya has appealed the high court’s decision regarding this case, with hearings and decisions on the appeal scheduled for the coming week.

TSC’s 1.5% Housing Levy Remains Amidst July Salary Increment