How 12% increment in minimum wage will affect your salary
On Sunday, May 1, 2022, President Uhuru Kenyatta announced a 12 per cent increment in the minimum wage in Kenya effective May 1, 2022.
A minimum wage, according to the International Labour Organisation (ILO) is “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract".
Central Organization of Trade Unions (COTU) Deputy Secretary General Benson Okwaro explains that the increment only affects employees who are not unionised.
"Minimum wage is set depending on the sector that people work, like the agriculture and the security sectors. We also have the general minimum wage, which is determined by where people work, like in Kenya, the minimum wage for Nairobi, Mombasa and Kisumu was 13,572 before the increment. This only affects employees who are not union members, who are not beneficiaries of their respective bargaining agreements," Okwaro says.
"Where there are unions like us in the communications sector, the minimum salary we have today (in the telecommunications sector) could be Ksh40,000 for example. Therefore, they are not affected by the changes because they are already earning above the minimum wage. "
According to Okwaro, employees and employers who are not bound by CBA negotiations will have to implement the changes for employees earning below or equivalent of the minimum wage per sector.
He said as such, since such employees are not members of COTU, they might not monitor to ensure the changes are made.
In the agricultural sector, an unskilled labourer will take home a minimum of Ksh7,545 per month from Ksh6,736 while a farm clerk will take home Ksh14,583 from Ksh12,152.
General workers in former municipalities will pocket Ksh14,026 every month from Ksh12,523. In other town, the lowest paid wage labourer will receive Ksh8,110, an increase from Ksh7,241.
The salaries of tailors and drivers of medium-sized firms will increase from Ksh23,039 to Ksh25,805, putting them into the tax bracket.
The proposal for the increment of the minimum wage is done through the Wages Council, which entails COTU, the Federation of Kenyan Employers and "the Independent" (those who do not fall under any organisation).
The agriculture sector recommended a 10 percent salary increase while the general wage council recommended a 15 percent increment. COTU had recommended a 23 percent increment.
"Where we do not agree we just give our recommendations and leave it for the government to decide. It is from the recommendations that the government decided to give the 12 percent increment. It might not necessarily be enough but it adds a shilling to their pockets," Okwaro says.
Okwaro explains that employers are not compelled to increase the salaries for employees who are earning the minimum wage, but notes that most employers, out of good will, have always effected the increment to all cadre of earners whenever it is announced.
This means that not all employees will benefit from the increment.
He however urged employees to join trade unions, so as to benefit from the CBAs that unionised employees get.
"It is important for Kenyan employees to join unions so that they do not have to wait for the government to give an increase. In the CBAs we negotiate issues of house allowance, maternity leave, travelling allowance and many more.
"But you see the general wage will just give you a one-off increase on salary and you don't benefit any other time. They can use their numbers to strengthen the unions because if we sleep on the job they can remove us," Okwaro adds.
Okwaro also serves as a trade union leader at Communication Workers Union.
