April Salaries Likely To Delay Following Corona Law

As a way of cushioning Kenyans against the adverse effects of Coronavirus, the government proposed a tax waiver for employees earning 24,000 shillings and below.

The proposed bill which was presented to parliament on Friday, April 24, 2020, was approved but only after the legislators made some changes. They inserted some clauses and removed others.

The legislators agreed to the tax waiver on salaries below 24,000 but rejected the imposition of tax on food, agricultural products, mosquito nets, gas cookers, and medical products which were meant to boost revenue during the Covid-19 crisis.

The lawmakers also proposed a bill that seeks to bar employers from firing their employees or reducing their pay during pandemics.

The rest of the employees, that is, those who earn salaries above 24,000 will get a tax relief of 25 percent.

The approved bills, however, will have to be signed by President Uhuru Kenyatta before they become laws. Following the rejection of some bills, the president might disagree to sign the approved bills to law until a consensus is reached.

With April almost coming to a close, the uncertainty of signing the bills is likely to delay the month’s salaries as both employers and employees await to know the next move.

Some employees have been advised to hold their horses as the consultations are ongoing. Employees who work under the Parliamentary Service Commission, the Teachers service commission have been receiving salaries by the 20th of every month but they have to wait a little bit longer.

This is after the Integrated Payroll and Personnel Database (IPPD) that is usually responsible for processing salaries for those in the public sector was locked.

“Our IPPD systems countrywide are locked. This is to advise all of you to prepare for the delay in salary processing,” read a notice by the agency.

Experts argue that including many proposals into one bill was a mistake that would lead to disagreement between the legislator and the executive and thus consume a lot of time especially at a time when the country is fighting a crisis.

READ: Coronavirus Could Kill 10 Million People ~ Bill Gates