The Salaries and Remuneration Commission (SRC) disclosed on Wednesday the government’s successful efforts to significantly and consistently reduce the public wage bill over the past six years.
In a post on X, the commission explained its recommendations regarding the Daily Subsistence Allowance (DSA) and the elimination of several allowances previously granted to public service employees, including Cabinet Secretaries (CSs) and Members of Parliament (MPs).
“SRC has reduced the total public wage bill by advising on DSAs and abolishing some allowances,” the post noted.
Key cuts included ministerial allowances for Cabinet Secretaries and plenary sitting allowances for MPs and Members of County Assemblies (MCAs). Additionally, the commission implemented a taxable car allowance for CSs, Principal Secretaries (PSs), and judges.
The cuts extended to task forces, retreats, and various institutional internal committees. This strategic approach has played a crucial role in significantly reducing the public wage bill and sustaining this trend over the last six years.
On August 29, the SRC announced a wage bill ratio of 4.9%, accounting for 46.6% of the total ordinary revenue for the 2022/2023 financial year. This figure reflects a steady decline from 51.54% in the 2017/2018 financial year and 47.06% in the 2021/2022 financial year.
The SRC projects a further decrease in the wage bill ratio to 39.22% for the 2023/2024 financial year.
However, this ratio still exceeds the recommended threshold of 35% of national revenue, a target the government hopes to achieve by 2028 through reduced expenditures and increased revenue generation.
