More Salary Deduction for Employed Kenyans to Unemployed Insurance Fund
Salaried Kenyans could soon experience new monthly deductions due to the Unemployment Insurance Bill 2022, which was submitted to the parliamentary budget office on Thursday for review.
This bill, proposed by Bernard Shinali, a Member of Parliament from Ikolomani, aims to establish a system where both employers and employees contribute monthly to a designated fund. Shinali was inspired by South Africa, where both employers and employees are deducted 1 percent each for a similar fund.
The primary goal of this proposal is to create a Unemployment Insurance Fund that would provide financial assistance to employees who become unemployed or their beneficiaries. This fund would be sustained by contributions from both employers and employees. The intention behind this initiative is to support individuals facing unemployment during challenging socio-economic periods.
In addition to salary deductions, the fund will also receive contributions from parliamentary appropriations, county government funds, donations, and grants from development partners. According to the bill, the Unemployment Insurance Authority will be responsible for managing these funds, and it will be established through parliamentary legislation.
The Authority will operate under a set of rules and regulations as a corporate entity, with a board of nine members and a chairperson. Its responsibilities will include administering the fund, advising the Cabinet Secretary on unemployment insurance policies and legislation, and offering guidance to both levels of government on policy matters related to unemployment and unemployment insurance.
If the bill sponsored by Shinali is approved by parliament, the Treasury Cabinet Secretary will have the authority to exempt certain categories of employees from mandatory salary deductions.
This decision would be made in consultation with the Salaries and Remuneration Commission (SRC), which determines the salaries of state officers and public servants.
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To qualify for benefits from the fund, Kenyan citizens must be aged between 15 and 64 years and must have been actively seeking employment for four consecutive weeks. Furthermore, these individuals should not have any incapacities that prevent them from accepting job opportunities when they arise.
More Salary Deduction for Employed Kenyans to Unemployed Insurance Fund
