SRC calls national conference to address Sh765 billion wage bill
The Salaries and Remuneration Commission (SRC) is planning a national conference to deliberate on the ballooning wage bill.
SRC chairperson Lyn Mengich said the bill, which has grown by 50 per cent in the past five years to hit Sh765 billion, must be addressed to salvage the economy.
Speaking yesterday at the National Treasury, Mengich said the public wage bill jumped from Sh500 billion in 2013/14 financial year to Sh765 billion in 2019/20, a development which, she said, has had a direct impact on the economy.
She said the need for dialogue is based on revelations that measures taken in the past yielded a positive outcomes.
“Concerted efforts by the government is required to achieve a wage bill of not more than 35 per cent of revenue as per the Performance Finance Management and a wage allowance to gross domestic product of not more than 7.5 per cent from 7.9 per cent,” she said.
She said in order for the government to achieve the Big Four agenda, it must focus on spending efficiently.
A wage bill that does not match economic and revenue growth, Mengich said, puts pressure on the development and investment share of the fiscal budget.
She said the conference whose theme is “Transforming Kenya’s Economy through a Fiscally Sustainable Wage Bill” will engage stakeholders on how to spend effeciently while cutting on recurrent expenditure.