at two-thirds of a civil servant’s basic pay, citing the increasing financial burden brought about by new statutory deductions. The move comes in response to growing concerns that thousands of government employees are now taking home less than 30 per cent of their monthly salaries.
At the heart of the issue is Section 19 of the Employment Act, 2007, which prohibits employers from making deductions exceeding two-thirds of an employee’s pay. This regulation was designed to protect workers from excessive deductions and ensure they retain enough income for basic needs. However, the law is now being challenged as “no longer practical” by the National Assembly’s Public Accounts Committee (PAC).
PAC chairperson and Butere MP Tindi Mwale pointed to rising statutory deductions under President William Ruto’s administration as a key reason for reviewing the law. Civil servants are now contending with the 1.5 per cent Affordable Housing Levy, 2.75 per cent for the Social Health Insurance Fund (SHIF), and increased contributions under the National Social Security Fund (NSSF).
Mwale expressed concern that several government departments are already flouting the existing law, leaving workers with a fraction of their pay. Instead of enforcing compliance or reducing deductions, MPs are now urging the Attorney General to consider amending or repealing the provision to align with the evolving tax landscape.
During a recent PAC session, Correctional Services Principal Secretary Salome Beacco was questioned over the legality and impact of these deductions. Lugari MP Nabii Nabwera warned that failure to resolve the issue would result in repeated audit flags, while Funyula MP Wilberforce Oundo argued that civil servants should not be penalised for circumstances beyond their control.
The committee has since directed the National Treasury to consult with Attorney General Dorcas Oduor on the feasibility of scrapping or revising the one-third salary protection rule, acknowledging that under the current regime, it has become increasingly untenable. The decision could have far-reaching implications for worker protections and government fiscal policies moving forward.
