Saturday, March 31, 2012

Commission unveils draft on Salaries and Remuneration Regulations


BY FELIX OLICK
The Salaries and Remuneration Commission (SRC) have unveiled the Salaries and Remunerations Regulations that could see retirees smile all the way to the bank.
The new regulation requires the SRC to conduct periodic reviews of pension to compensate for the rise in the cost of living.
The draft proposal that recommends a four-year review of remuneration and benefits of State and public officers also recommends an automatic salary increment to all state or public officers from the effective date of appointment.
This means that an annual increment shall only be awarded to new employees at least after one year of service.
However, the review may be implemented in phases across the public sector subject to the budgetary allocation approved by parliament.
This is because the legislature shall allocate funds for the implementation of the review.
The review that shall be conducted at the same time across the public sector would require at least a one-year study on labour market dynamics and the prevailing economic situation.
According SRC Chairperson Sarah Serem, the commission will also conduct special reviews to ensure attraction and retention of critical or scarce professional skills.
"The special reviews may be necessary to effectively execute the functions of the public service or to compensate for increased cost of living. However, the special review shall not interrupt or replace the four year review cycle," said Serem.
Among the factors that the commission shall consider in setting and reviewing salaries include the prevailing social, economic and environmental factors, prevailing market rates, sustainability and the productivity of employees.
Other factors include equity, competitiveness, the prevailing salary structure in the public service and benchmark with similar organisations or those the organisation loses staff to.
In addition to the above guidelines, the commission shall consider among other factors impact of the salary package, ratio of allowance to the salary and the existing legal provisions in determining and advising on allowances and other remunerative benefits.
The draft regulations were drafted by the commission with the assistance of the Kenya Law Reform Commission.
Speaking when she unveiled the new guidelines at Laico Hotel in Nairobi on Saturday, Serem said that public service organisations would not be allowed to fix the salaries of experts whose remuneration is likely to be outside the public service remuneration structure.
"The concerned organisation shall refer the issue of the experts remuneration to the commission. This is meant to eliminate disharmony that is rampant within the public service," noted Serem.

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