23 C
Kenya
Sunday, September 20, 2020

All teachers, police, civil servants to take salary cuts

Must Read

11 mistakes standing between you and your first million

Becoming a millionaire isn’t as far-fetched as you would believe. With dedication, patience and focus, becoming a millionaire is completely...

Shelter Afrique Partners With World Bank to Address Affordable Housing Crisis

Pan-African housing development financier Shelter Afrique has entered into a strategic partnership with the World Bank aimed at addressing...

604 companies send employees home as Kenyan economy bleeds

Kenyan economy: The Kenyan economy is in a crisis. Over 600 companies have so far sent employees home. At...

Civil Servants Salaries: Teachers, police officers and all civil servants in Kenya are set to take salary cuts. The more than 530,000 civil servants will in January 2021 have their take-home pay slashed by 7.5 percent.

According to a report that appeared in the Business Daily on Tuesday, the cuts will be part of their contributions to the pension savings scheme.

“The employees attached to ministries and State agencies will see a portion of their salaries sliced for onward remittance to the soon to be created Public Service Superannuation Scheme (PSSS). This means that State workers will cede about Sh. 2.4 billion monthly or Sh. 28 billion to the fund that will emerge as Kenya’s largest pension scheme,” the report said.

Meet DP Ruto’s close ally who is building Sh. 6 billion mall

According to the National Treasury Cabinet Secretary Ukur Yatani the pension scheme will have a board and chief executive officer. The establishment of the scheme, he said, is geared towards reducing the pension burden that is shouldered by the exchequer.

“Membership to the scheme will be mandatory to all new entrants upon commencement of the Act and all employees aged below 45 as at the date. Employees aged 45 years and above will have an option to join the scheme by completing the Public Service Superannuation Scheme option form,” the National Treasury said in a statement.

According to the business newspaper, civil servants in Kenya were initially supposed to contribute 2 per cent of their monthly salary to the scheme in the first year, five per cent in the second and 7.5 per cent from the third year.

See amount of wealth the late Papa Shirandula owned

“The government will match the contributions with an amount equivalent to 15 per cent of every workers’ monthly pay. This will be equivalent to about Sh. 6.9 billion monthly contribution or Sh. 55.87 billion annually, turning pension expenditures to one of the largest budget items,” the report said. Civil Servants Salaries.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

188,008FansLike
11,005FollowersFollow
186FollowersFollow
291SubscribersSubscribe
WhatsApp
Telegram

Latest News

Sick Nyandarua man dies on wheelbarrow as poor roads persist

Nyandarua Roads: It was shame and shock after a man from Nyandarua who could not access a health centre...

Shelter Afrique Partners With World Bank to Address Affordable Housing Crisis

Pan-African housing development financier Shelter Afrique has entered into a strategic partnership with the World Bank aimed at addressing the affordable housing crisis evident...

604 companies send employees home as Kenyan economy bleeds

Kenyan economy: The Kenyan economy is in a crisis. Over 600 companies have so far sent employees home. At the same time, a report...

Nairobi estates where power blackouts are the order of the day

Power Blackout Nairobi: In Kenya's capital city Nairobi, there are estates that are more prone to blackouts than the others. Data from Kenya's sole power...

How to Register for NHIF in Kenya (Updated Procedure)

This article is a guide on how to register for NHIF. NHIF (National Hospital Insurance Fund) registers all eligible members from both the formal...

More Articles Like This