'Scientists’ pay rise unsustainable, increased early retirement cases'

____________________

The Government in 2021 increased salaries for scientists in a bid to attract and retain critical talent. The move was also intended to highlight the importance of science and innovation in driving the country’s development.

However, Auditor General Edward Akol says he has not obtained evidence that there was a comprehensive analysis of the cost implication of the increased wages and the resultant exponential increment in the pension liability.

Akol made the remarks in his latest report to Parliament for the audit year ended December 31, 2024.

“In addition, it has been observed that some science employees who had served and qualified for early retirement had since retired, as a result of the increase. In essence, the increase appears to have become an incentive for early retirement,” he says.

Pension and gratuity implications

Akol adds that he further analysed two salary scales of an officer and a commissioner for science and arts who had served for 30 years (360 months) to determine the effect of the increase in the salaries on pension and gratuity.

In scenario one, he compared the position of education officer (teacher) for science (U4-PTEACHSC) and non-science (U4-PTEACHLWR) payments to determine the effect on their retirement benefits.

He noted that an officer with science qualifications earns sh4m whereas an arts teacher earns sh1,078,162.

Akol observed that the science teacher will get sh172,800,000, while the arts teacher will get sh46,576,598 as gratuity payments at the end of service.

He also observed that the science teacher will get sh1,920,000, while the arts teacher sh517,518 as a monthly reduced pension.

Akol also noted that the reduced monthly pension of a science teacher of sh1,920,000 is more than twice the net pay of a serving arts teacher of the same scale.

In scenario two, relatedly, Akol compared the position of a commissioner for science (U1SE-1 SC) and non-science (U1SE-1), payments to determine the effect on their retirement benefits.

He noted that an officer with science qualifications earns sh10,622,398, whereas one with arts qualifications earns sh1,859,451.

He also noted that the science officer will get sh462,711,657, while the arts officer sh80,774,551 as gratuity payments at the end of service.

The science officer will get sh5,141,241, while the arts officer will get sh897,495 as a monthly reduced pension.

He also observed that the reduced monthly pension of a science officer of sh5,141,241 is more than thrice the net pay of a serving arts officer of the same scale.

“If the discrepancies are not addressed and managed, the increment for science officers may be an incentive for early retirement, create disharmony within public service and the pension liability may not be sustainable,” Akol warns.

He called upon the Government to conduct a study to review the salary schemes alongside the terms and conditions of service for in-service officers and inform the pension reforms to ensure sustainability.