Parliament will summon National Treasury Cabinet Secretary John Mbadi to explain why many civil servants are taking home less than the legally mandated portion of their salary due to increased tax deductions.
The Employment Act, 2007, requires employers to ensure employees retain at least one-third of their basic salary after all deductions, including taxes and statutory contributions. Employers who violate this rule face legal action and must repay any excess deductions.
The Public Accounts Committee (PAC) of the National Assembly, chaired by Butere MP Tindi Mwale, is concerned that thousands of public servants now receive less than the legal minimum take-home pay.
A report by the Public Service Commission (PSC) shows that 17,132 out of 79,453 civil servantsâapproximately 21.6 percentâearn less than one-third of their basic pay. Kiambu County leads the list, with 2,248 workers affected.
Recent tax policies introduced by the Kenya Kwanza administration have contributed to this issue. Over the past two years, public employees have seen deductions of 1.5 percent of their gross pay, along with a 2.75 percent levy for the Social Health Insurance Fund (SHIF).
These tax measures have pushed many civil servants to the brink of the one-third salary threshold, according to the PAC.
Auditor General Nancy Gathungu’s latest report also highlighted the growing number of civil servants earning below the mandated level.
During a recent parliamentary session, Lugari MP Nabii Nabwera emphasized the urgency of addressing this issue with the National Treasury. Rarieda MP Otiende Amolo suggested revising existing salary regulations to reflect current economic realities.
By Nairobi