Teachers on July 26, 2023, received reduced July salaries instead of an expected pay rise as the Teachers Service Commission (TSC) made new deductions for the 2023/2024 budget.
The teachers were, however, given a reprieve as the controversial 1.5 per cent housing levy was not effected due to a court order suspending the implementation of the Finance Act 2023.
According to their pay slips, teachers have been deducted contributions to the National Social Security Fund (NSSF), to which they have never contributed before.
This is because their pension is through a provident fund based on their job grade. Deductions have been made for both funds for the July salary.
The deductions are a flat rate of Sh320 for all teachers, which appears to contradict the NSSF rate of Sh600 for the lowest earners and Sh1,080 for the highest earners. These rates came into effect in February. The previous rate was Sh200. There is a proposal to increase the rate to 6 per cent of an individual’s salary, but this should not exceed Sh18,000.
There was confusion early on Wednesday when teachers complained that the money had been credited to their accounts but pay slips had not yet been uploaded on the TSC portal to show the nature of the deductions.
TSC has also been making deductions to the National Hospital Insurance Fund (NHIF). According to the proposed National Health Insurance Fund Regulations (2023), all employees are required to contribute 2.75 per cent of their gross salary to the fund. The previous NHIF rate was between Sh150 and Sh1,700 depending on an individual’s monthly salary. Teachers will pay more when the 2.75 per cent comes into effect.
According to teachers who spoke to the Nation, their salaries included the annual increment, which usually takes effect in July, to cushion them against inflationary pressures. If the increase moved a teacher to a higher grade, their contribution would have gone up, wiping out the benefit of the increase.
“We’ve had numerous correspondences with the TSC asking for a review of the terms of reference of the 2021-2025 collective agreement, but there’s been a delay because of the procrastination of the SRC and the TSC. When the President gave the final nod on this matter, we thought that the Treasury was in agreement and the SRC had also given other public servants the opportunity, especially the civil servants, to discuss their salaries. The President was very clear that this was a matter of between 7 and 10 per cent [increase]. There shouldn’t be any delay,” said Kenya Union of Post Primary Education Teachers Secretary-General Akello Misori.
The expected pay rise is included in the 2023/2024 budget.
Kuppet said the pay rise was agreed between them and President William Ruto and was linked to the passage of the Finance Act 2023, the implementation of which has been halted by the High Court.
Kuppet secondary education officer Edward Obwocha said the union would not contest the deductions if the promised pay rise goes through.
“If teachers are cushioned by a 10 to 12 per cent increase, we have no objection as long as we also continue to negotiate with TSC to further improve the salary to take into account the high inflation rate and even review the commuting allowance upwards now that the fuel levy has also been reviewed,” he said.
