CBA 2021-2025 hopes dashed till End Of 2-Year Period as SRC Blames Bad Economy
The Salaries and Remuneration Commission (SRC) has brought the debate concerning the new Collective Bargaining Agreement (CBA) for teachers.
SRC has revealed that the National Treasury advised them that because of the effect of the COVID-19 pandemic on the performance of the revenue and the expected slow economic recovery the Commission should consider postponing the review for the next two fiscal years until the economic situation changes.
After the advice of SRC to TSC, there will now be no review of the basic salary structures, allowances and other benefits paid in the public sectors in the financial year of 2021/2022 to 2022/2023.
The following is the Salaries and Remuneration Commission’s statement.
Outcome of remuneration and benefits in the Third Remuneration Review Cycle
The review of remuneration and benefits in the third review cycle is informed by outcomes of the job evaluation and grading, labour market salary surveys and a review of the current salary structures in the public sector.
Implementation of the outcome of the third remuneration and benefits review cycle is projected to cost Ksh. 82 billion over four – fiscal-year period.
Pursuant to the constitutional principle of affordability and fiscal sustainability, SRC engaged the National Treasury on the projected Cost.
The National Treasury advised the Commission that due to the effect of COVID-19 pandemic on the performance of the revenue and the expected slow economy recovery;
- The Commission to consider postponing the review for the next two fiscal years until the economy improves and;
- The National Treasury will review the performance of the economy and advise SRC as/and when the review can be done based on the prevailing circumstances to ensure affordability and fiscal sustainability.
Pursuant to SRC’s mandate to set, and regularly review the remuneration and benefit of State officers, and to advise on the remuneration and benefits of all other public officers, and to adive on the remuneration and benefits of all other public officers, the Commission considered the advice of the National Treasury, the constitutional principles and SRC Act principle on remuneration and benefits and hereby, states as follows;
Notwithstanding the need to enhance equity and fairness through harmonization of salary structures, Implementation of job evaluation results and the need to review salary structures;
Cognisant of the government’s financial constraints, the current wage bill ratios, the need to release resources for investment in the strategic prioritiesof the government to jumpstart the COVID-19 ravaged economy;
- There will be no review of the basic salary structures, allowances, and benefits paid in the public sector in the financial year 2021/2022-2022/2023;
- Annual salary notch adjustments in existing salary structures, as set or advised by SRC, will continue to be applied within budget allocation;
- No additional funding will be provided for implementation of the job evaluation results in the financial year 2021-2022 and 2022/2023;
- Public sector institutions may implement job evaluation results, by placing jobs in the rightful job evaluation grading, within the existing salary structures and approved budgets, subject to confirmation to SRC that the funding is provided for in the current budget;
- Public sector institutions will be required to fully implement the Allowances and Benefits Policy; and
- SRC will review the situation after two fiscal years, and based on the status of the economy, guide on the way forward for the remaining period of the third remuneration and benefits review cycle.
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