The recent Supreme Court ruling which legalized the much contested Housing Levy, which is meant to support the government in building affordable houses for Kenyans, has dashed teachers’ hopes for better pay as they add it to the long list of government deductions on their already over-committed payslips.
The Supreme Court, in its recent ruling, overturned the Court of Appeal’s decision to nullify the Finance Act, 2023 and reinstated it as law, effectively upholding the Affordable Housing Levy.
This implies that teachers will continue to be deducted the 1.5 per cent from their salaries for the Affordable Housing Levy, in addition to the newly introduced Social Health Insurance Fund (SHIF) under the Social Health Authority (SHA) where they are being deducted 2.75 per cent.
Already, teachers have a comprehensive medical cover which is being offered by Minet Kenya Insurance Brokers Limited, which was contracted by the Teachers Service Commission (TSC), the medical cover being a result of pooling together medical allowances for all teachers.
At the same time, the teachers are also have to part with 6 per cent National Social Security Fund (NSSF), which the government recently started to mandatorily implement across all its arms (civil servants).
It will be remembered that teachers in the recent past protested the NSSF deductions, arguing that they already contribute to PSSS (Public Service Superannuation Scheme) at the rate of 7.5 per cent of their monthly basic salary. The scheme does not have an option of employees making additional voluntary contributions above the mandatory 7.5 per cent of the basic salary.
Also, the same teacher will have to pay 16 per cent in Value Added Tax (VAT) when they purchase goods.
The introduction of the two deductions (Housing Levy and SHIF) now sees a number of government employees, including teachers, surrendering on average more than 61 per cent of their salaries.
Added to this unbearable burden are loans from commercial banks, Saccos and other financial institutions, not to mention the various contributions like insurance.
One third rule
This means that their payslips are already way past the one third rule for deductions, which leave a number of them going home with almost nothing.
The Employment Act, 2007 requires that public servants should not over-commit their payslips beyond two-thirds, meaning that after all deductions including taxes, an employee must remain with at least a third to take home.
For instance, a Chief Principal at Grade D5 TSC Scale 15 with a minimum salary of Ksh131,380 will now take home a paltry Ksh51,172 after standard deductions of Pay-As-You-Earn (PAYE) at about 35 per cent on the highest, SHIF 2.75 per cent, Housing Levy 1.50 per cent, NSSF 6 per cent, and VAT 16 per cent, bringing the total to 61 per cent.
These are exclusive of other statutory deductions like loans, 2 per cent into Widows and Children Pension Scheme (WCPS), up to 2 per cent union dues, and subscription to membership of associations.
On a happier note, teachers received a slight increase in the recently reviewed 2021-2024 Collective Bargaining Agreement (CBA), which is in its second phase of implementation, where for instance teachers in Grade B5 (Primary Teacher II) got an increment of Ksh4,666 in the two phases.
Grade C1 teachers got a net increase of Ksh5,832 in two phases while those in Grades C2 got Ksh7,495, also in two phases. Those in Grades C3 got a total increase of Ksh7,658.
However, despite the raise, teachers were hard hit by a thunderbolt as the same amounts were subjected to numerous deductions.
No respite
The Kenya Union of Post Primary Education Teachers (KUPPET) has decried the continued suffering of teachers, with Migori Executive Secretary Orwa Jasolo noting that this latest development must be factored in the next so that it can cushion teachers who are chocked by stress due to shrinking pay.
“Teachers are really suffering. The government on the other hand has refused to increase the basic pay. Last time they talked about 9 per cent, which was divided into two. But look at the kind of deductions they want to effect. They have effected 1.5 per cent and currently effecting 2.75 per cent which is on average about Ksh2,200 for every teacher. These waters down everything that has been given out in terms of increment. The take home for a teacher is shrinking and will continue to shrink every day,” said Jasolo.
“In the new CBA, we want all these factors considered because what was negotiated before was without this issues. If this is not factored in the next CBA, then we will not sign that CBA,” he added.
Kenya National Union of Teachers (KNUT) Mumias Branch Executive Secretary Cyprian Chibile said the government should be considerate.
YOU MAY ALSO READ:
What needs to be done to bridge the shortage of Science teachers
“It is very unfortunate that the government wants money and teachers want the same money. We have statutory deductions and we are not happy about the same. If the teacher’s payslip is going to be narrow, will they teach? You cannot teach if you don’t have money,” said Chibile.
He added that there is no rationale when the money taken from teachers is also stolen.
“Can they give space … so that the teacher has something to take home at the end of the day? Otherwise, you’ll find teachers not teaching because their payslips cannot allow them to go to class. Once they curb corruption we are done. But even if we pay it up to 100 per cent tax and the money is consumed carelessly, we shall not get anywhere,” he said.
Roy Hezron and Obegi Malack
You can also follow our social media pages on Twitter: Education News KE and Facebook: Education News Newspaper for timely updates.
>>> Click here to stay up-to-date with trending regional stories
>>> Click here to read more informed opinions on the country’s education landscape
>>> Click here to stay ahead with the latest national news.
