TSC Introduces NSSF Flat Rate Deductions for Teachers’ Salaries
The Teachers Service Commission (TSC) made new deductions for the 2023/2024 budget on July 26, 2023, as a result of which teachers’ July salaries were reduced rather than increased.
A court order suspending the implementation of the Finance Act of 2023 provided teachers with a reprieve, as the controversial 1.5 percent housing levy was not implemented.
According to pay slips seen by Teachers Updates, contributions to the National Social Security Fund (NSSF) have been deducted from teachers’ paychecks for the first time.
Their pension is provided by a provident fund based on their employment grade. Both funds have been deducted from the salary for the month of July.
NSSF deductions In contrast to the NSSF rate of Sh600 for the lowest earners and Sh1,080 for the highest earners, the deductions are a flat rate of Sh320 for all teachers.
This rate became effective in February. Previously, the rate was Sh200. There is a proposal to increase the rate to 6% of a person’s compensation, but it should not exceed Sh18,000 per individual.
There was confusion on Wednesday morning when teachers complained that the money had been deposited into their accounts, but pay stubs indicating the nature of the deductions had not yet been published to the TSC portal.
In addition, TSC has been contributing to the National Hospital Insurance Fund (NHIF).
The proposed National Health Insurance Fund Regulations (2023) require all employees to contribute 2.75 percent of their gross pay to the fund.
The previous NHIF rate ranged from Sh150 to Sh1,700 per month, depending on a person’s monthly salary. Teachers will pay more once the 2.75 percent increase is implemented.
According to teachers who spoke with the Nation, their compensation included the annual raise, which typically takes effect in July, to protect them from inflationary pressures.
If the increase promoted a teacher to a higher grade, their contribution would have increased, nullifying the increase’s benefit.
Teachers Updates established that teachers and government employees would not receive a promised pay increase this month because the Salaries and Remuneration Commission delayed reviewing salaries and informing various government agencies.
Numerous letters have been sent to the TSC requesting a review of the terms of reference for the 2021-2025 collective agreement, but there has been a delay due to the sluggishness of the SRC and the TSC.
When the President gave his final approval on this matter, we believed that the Treasury was in agreement and that the SRC had provided other public servants, particularly civil servants, with the opportunity to discuss their salaries.
The President made it abundantly plain that the proposed increase would be between 7 and 10 percent.
There should be no delay, according to the general secretary of the Kenya Union of Post Primary Education Teachers, Akello Misori. The anticipated wage increase is accounted for in the 2023/2024 budget.
Kuppet stated that the pay raise was negotiated with President William Ruto and was contingent on the passage of the Finance Act 2023, whose implementation has been halted by the High Court.
Edward Obwocha, director of secondary education for Kuppet, stated that the union would not contest the deductions if the pledged pay increase is implemented.
Obwocha said Kuppet) have no objection if teachers receive a 10 to 12 percent increase to cushion them.
However, he emphasized that they will continue negotiations with the Teachers Service Commission (TSC) to further enhance the salary, considering the high inflation rate.
Additionally, Obwocha mentioned the need to review the commuting allowance upwards, especially now that the fuel levy has also been reviewed.
TSC Introduces NSSF Flat Rate Deductions for Teachers’ Salaries