Employers Raise Alarm Over Salary Deductions

The Federation of Kenya Employers (FKE) has raised an alarm over the numerous salary deductions that are currently being implemented.

At a press briefing on Friday, January 24, the federation noted that the deductions had surpassed the required limit set out by the law.

As a result, the federation's CEO Jacqueline Mugo revealed that some employers were forced to increase the salaries of the employees owing to the guidelines in the law.

"Since the new payroll deductions were introduced, we have received a lot of distress calls from our members and the employees themselves because the take-home pay is too little and below the threshold of one-third.

"Our concern is that employers are finding it difficult to comply. The employers are not to deduct more than two-thirds of an employee's total each month. They are in a way forced to be in breach because of the level of deductions," she stated.

On the other hand, Mugo added that employees were feeling the pinch of the deductions as they take home less.

Consequently, she added that the federation would engage with relevant government offices to offer some reprieve for Kenyans.

"We have asked that the deductions be reviewed because currently, deductions are pegged on total earnings. Previously, it was pegged on the basic pay and we were really hoping that this would be reviewed in terms of the policy approach," the CEO added.

"The greater concern is the living standards of the employees which is deteriorating."