On Wednesday, 3 July 2024, the Salaries and Remuneration Commission (SRC) froze the second phase of the salary increment for State officers under the Third Remuneration Review Cycle (2023/2024 – 2024/2025).
Lyn Mengich, SRC Chairperson, clarified that the decision was driven by the current financial constraints facing the country. The salary increment was initially scheduled to take effect from 1 July 2024.
Due to emerging fiscal challenges, proposed budget cuts, and existing contractual commitments, SRC, in consultation with stakeholders and the National Treasury, reviewed the pay settings and advice for the second phase of implementation.
As a result, SRC froze the upward review of salaries for all State officers, taking into account the current economic realities occasioned by the withdrawal of the Finance Bill, 2024, and a reduced budget, to ensure the wage bill remains affordable and fiscally sustainable. This move significantly relieved the concerned taxpayers, who were burdened by the ever-increasing wage bill.
The August 2023 Gazette Notice, which had granted State officers a pay increase, had sparked resentments among the youth, who were protesting against the high cost of living, lack of jobs, low salaries among other cadres, among other issues.
In response, several lawmakers publicly announced that they opposed the salary hikes proposed by SRC in the August 2023 Gazette Notice, urging that funds be redirected to more pressing national issues, such as the payment of teachers and intern doctors.
Other legislators called on SRC to slash their salaries downwards noting that they had not requested SRC for the pay increase, while other said they did not want the pay hike.
SRC welcomed the several sentiments from legislators, which were expressed on the floor of the Senate, in the media and social media, and looked forward to an engagement at an appointed time with the legislators, to review proposals for their salary reductions.
The Council of Governors also denounced the pay rise, highlighting what it termed as the fragile state of the country’s economy.