Early Salary Payment for Teachers Ahead of Christmas.
Teachers employed by the Teachers Service Commission (TSC) are set to receive their December 2024 salaries earlier than usual in anticipation of the Christmas festival. The Commission has already closed the December payroll to facilitate the timely payment of salaries.
TSC sources confirm that teachers will receive their salaries by the end of this week, with payments scheduled for Friday. The Commission has also completed the remittance of third-party deductions, which include insurance premiums, union dues, HELB, and bank loans.
Annual Leave Allowance in January
Looking ahead to January, teachers will benefit from the payment of their annual leave allowance, which will be based on their respective job groups. This allowance will be disbursed together with their January salaries. For instance, the lowest-paid teachers will receive Sh 4,000 as their annual leave allowance.
Below are the TSC Leave Allowance rates according to the 2021-2025 CBA and Circular 14/2021:
Leave Allowance Per Job Group
| Grade | Annual Leave Allowance |
|---|---|
| B5 | 4,000 |
| C1 | 4,000 |
| C2 | 6,000 |
| C3 | 6,000 |
| C4 | 6,000 |
| C5 | 6,000 |
| D1 | 10,000 |
| D2 | 10,000 |
| D3 | 10,000 |
| D4 | 10,000 |
| D5 | 10,000 |
Lower Pay Expected in February Due to NSSF Deduction Changes
In February, however, teachers will notice a decrease in their take-home pay due to a planned increase in National Social Security Fund (NSSF) deductions.
Starting February 1, 2025, the new regulation will see the monthly NSSF contribution rise to Ksh 4,320, up from the current combined contribution of Ksh 2,160 by both employees and employers.
This change is part of the phased implementation of the NSSF Act of 2013, which mandates employees to contribute 6% of their gross salary to the fund. The earnings limits for contributions have also been adjusted.
The lower earnings limit will now be Ksh 9,000, up from the current Ksh 7,000, while the upper earnings limit has been raised to Ksh 29,000. This means employees in this category will contribute more.
For example, an employee earning Ksh 40,000 will take home only Ksh 32,000 after statutory deductions, while someone earning Ksh 50,000 will receive a net salary of Ksh 38,000. Similarly, an employee earning Ksh 70,000 will take home Ksh 53,000 after deductions.
Impact of the NSSF Act and Other Tax Measures
The NSSF deduction changes are part of a broader government effort to enhance pension remittances.
The Act, which was first passed in 2013, faced a decade-long court battle before being implemented in 2023. In 2022, the Court of Appeal cleared the way for the government’s plan to roll out the new deductions.
This development comes amidst ongoing government initiatives to address the budget deficit, including the introduction of three tax bills—the Tax Procedures (Amendment) Bill, the Tax Laws (Amendment) Bill, and the Business Laws (Amendment) Bill.
The National Treasury is seeking to raise funds to bridge the deficit after withdrawing the Finance Bill 2024. Public hearings for the bills have already concluded, with further parliamentary approval expected.
Early Salary Payment for Teachers Ahead of Christmas.
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