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Govt hints at possible salary cuts to salvage economy

by biasharadigest
Labour CS Simon Chelugui hints at possible pay cuts to salvage the economy

The Government is hinting at possible salary cuts as it moves to salvage the economy that continues to take a hit from the Covid-19 outbreak.

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Labour Cabinet Secretary Simon Chelugui says the government is engaging stakeholders to address emerging concerns with a view of cushioning Kenyan workers from possible job losses.

The confirmation of positive COVID-19 cases in Kenya has created apprehension as employers and their employees struggle to adjust to the new reality of diminishing returns.

And amid fears of possible job losses resulting from the pandemic, Labour CS Simon Chelugui Monday held deliberations with stakeholders as the government sought to devise ways of cushioning employees from imminent job losses in the wake of a grim economic outlook.

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This even as Chelugui implored upon employers to devise strategies that will ensure that there are no job losses.

During the consultative meeting, the federation of Kenya Employers and the Central Organization of Trade Union (COTU) proposed a raft of proposals including a reduction of taxes levied on citizens, a reduction in contributions made to the National Social Security Fund (NSSF) as well protect the public from the effects of inflation in the wake of Covid-19 pandemic.

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