Summary of Industrial Court Ruling on Teachers Salary

This is a summary of the industrial court ruling on teachers salary on 30th June 2015.


Key observation and orders of the court
The court observed that the public service in Kenya adopts a four (4) year cycle of   remuneration review. Therefore, the court took note that TSC had submitted a detailed report to SRC with justification for a basic salary review of between 50-60% that has to be reviewed after four years. Therefore, the court ordered that TSC must abide by its submission and implement the 50-60% basic salary review.

With respect to the above order, the court observed that the teachers union had made a counter proposal of between 100-150%. The court did not pursue the basis for the unions proposals any further.

The court observed that the last negotiated salary increase between TSC and the unions were in 1997. It further took note that arbitrary increments were made to the teachers in the name of harmonization between 1997 and 2013.

The court noted big disparities. For example, the expenditure of the TSC Secretariat increased by 94.2% from Kshs.1.7 billion in 2009 to Kshs.3.3 billion in 2014. This happened at a time when the net pay for the teachers increased marginally. Therefore, there is a big disparity in revenue allocations to the TSC Secretariat and the revenue allocation to the teachers.

Catering for losses in money value/ inflation
The court took note of the fact that the Government has consistently budgeted for a 4% basic salary increase for all public officers including teachers to cater for the loss of money value (inflation). However, this allocation was never been implemented for teachers over the period 1997 – 2013.

The court noted that if 4% inflation cushion is spread from 1997 – 2009 alone, then it will translate to a 64% cumulative salary increase to teachers.

Enforcing the Basic Pay increment
The court has enforced TSC's document called,"Working Document" that contains the 50 – 60% basic wage increase. The enforcement effective from 1st July 2013 and the same will expire on 30th June 2017.

The court observed that the basic pay increase in reality translates to an annual hike of between 12.5% - 15% in the basic salary.

Allowances that must been increased
The court ordered TSC to increase the following allowances.
The court directed that the increase in the above allowances must be reflected in the period 1st July 2013 to 30th June 2017.

Points to note