The Federation of Kenya Employers now wants President Uhuru Kenyatta to break the tradition of announcing minimum wage increment during Labour Days.
FKE executive Director Jacqueline Mugo said this will give the relevant authorities’ time to consolidate their views and come up with an agreeable wage increment system.
Speaking at the 35th Kisumu FKE branch Annual General Meeting today, Mugo said institutions like the National Labour Board and Wages Council must be given time to give technical advice to the cabinet secretary of Labour before the annual review of minimum wages.
“Before the government makes the announcement on annual wage increment, we demand that we sit down and deliberate over the issue,” she said.
However Mugo defended President Uhuru for going ahead during the celebrations to mark this year’s Labour Day to announce an increment of 12 percent in the minimum wage without consultation.
She said the decision was informed by the absence of the Cabinet Secretary for Labour Kazungu Kambi who stepped aside following graft allegations.
Mugo said there was no opportunity to allow for wide consultations over the minimum wage increment.
“We know where the government is coming from, the previous year there was no wage increase and the absence of cabinet secretary, now this gave the leeway for the government to make that announcement without our input,” she said.
At the same time, Mugo said they will meet with the National Health Insurance Fund (NHIF) to iron out some concerns based on the basis of statutory deductions towards the fund.
She said there is confusion on the deductions being pegged on the gross income and which will have far reaching effects on the net income of the employees.
She said the meeting with NHIF will help clarify the matter and possibly revert the deductions based on the basic pay.