Salaries and Remuneration Commission 10/27/2019 PROGRESS IN THE HARMONISATION OF SALARIES AND REMUNERATION IN PUBLIC SERVICE Presentation by; Salaries and Remuneration Commission 14th December, 2017 10/27/2019

Establishment and Mandate of SRC The Salaries and Remuneration Commission is established under Article 230 of the Constitution of Kenya, and mandated to: Set and regularly review the remuneration and benefits of all State Officers; and Advise the national and county governments on the remuneration and benefits of all other public officers. FAIR PLAY FOR FAIR PAY 10/27/2019

Principles of Pay Determination Fiscal sustainability of the total public compensation wage bill; Attraction and retention of requisite skills Recognizing productivity and performance; Transparency and fairness; and Equal remuneration to persons for work of equal value (Section 12 (1) of SRC Act, 2011. FAIR PLAY FOR FAIR PAY 10/27/2019

Distribution of Employees in the Public Sector 2011 2012 2013 2014 2015 2016 % of total National Government 219,900 222,600 179,000 181,000 177,700 180,600 24.4 Teachers Service Commission 258,700 267,600 272,500 281,700 290,700 297,800 40.3 Parastatal Bodies 86,000 90,600 92,500 93,500 94,200 94,500 13.0 Majority Control by the Public Sector 41,400 43,600 44,500 45,000 45,300 45,400 6.1 County Government 37,300 37,700 94,800 99,600 110,500 118,900 16.7 Total Public Sector Employees 643,300 662,100 683,300 700,800 718,400 737,200   FAIR PLAY FOR FAIR PAY 10/27/2019

Public Sector Wage Bill Wage bill (2016/17) - 692.2 b Average growth in wage bill (2012-2017) - 10.4% Wage bill as % of ordinary revenue (2017) - 50.4% Wage bill as % of Nominal GDP (2017) - 9.3% % increase in employee numbers(2012-2017) - 49% % Increase in revenue (2012-2017) - 15% FAIR PLAY FOR FAIR PAY 10/27/2019

Harmonization of job grading & salary structure 10/27/2019 Harmonization of job grading & salary structure Prior to the establishment of SRC, remuneration and benefits were set through ad-hoc Committees and Commissions. Consequently, remuneration structures were characterized by: great vertical and horizontal disparities Non-recognition of productivity FAIR PLAY FOR FAIR PAY 10/27/2019

Harmonization …cont’d To achieve harmonisation in the grading structure and remuneration and benefits structure; the Commission undertook Job Evaluation for the entire public service. FAIR PLAY FOR FAIR PAY 10/27/2019

Job Grading Harmonization The JE exercise resulted in a harmonised grading structure, which: Determines where jobs should be placed in hierarchy; Defines remuneration levels and scope for pay progression; Provides the basis on which relativities can be managed; Provides a basis for achieving Equal Pay for Work of Equal Value; Forms a good basis for professional development and career growth; and Controls the implementation of pay practices. FAIR PLAY FOR FAIR PAY 10/27/2019

Harmonized Salary Structure A harmonized pay structure for employees at National and County Governments developed and communicated; Positions falling; below - shall be upgraded Within - shall be retained above - shall be treated as personal to self The recommended grading structure and the new salary structure is effective in 2017/18 financial year FAIR PLAY FOR FAIR PAY 10/27/2019

Approved Grading & Salary Structures All reviews (CBAs and management of salaries) will be anchored on the advise given by SRC Salary Structure for State Officers in County Governments State Officers Gazette Notice 2017-2022 web.pdf (SRC website) Salary structure for Public Officers in County Governments Salary Review Phase I effective 1st July 2017 County Employees.pdf (Circular forwarded to all counties) Grading Structure SRC Job Evaluation Report.pdf (SRC Website) FAIR PLAY FOR FAIR PAY 10/27/2019

Harmonization challenges Some counties’ are over established – A case in point is one county with over 19 Chief Officers. Organization structure – during job evaluation, some counties had no approved organization structures which would have been a good guide for evaluation and recruitment Number of employees differ from county to county even where the work load is similar Non-adherence to SRC advices 10/27/2019

Recommendations Continuous capacity building Enactment of regulations to enhance compliance and adherence to public finance management and standards Adherence to the set parameters provided by SRC in CBA negotiations; Regular consultation and collaboration Counties to clearly address their functions as per the 4th schedule of the Constitution of Kenya There is need to standardize the organization structures and designations 10/27/2019 FAIR PLAY FOR FAIR PAY