Pension reforms to secure funds for workers’ pay raise, says Muruli

KAMPALA- The Minister of Public Service, Mr Muruli Mukasa, has said government is considering changes in the pension schemes as one way of looking for money required to effect a pay raise for public servants.
He revealed that having a contributory pension scheme for public servants will help government raise the required funds.

“A contributory pension scheme will eventually relieve government of some of the commitments of paying. For instance, the workers can contribute 5 per cent and government contributes 10 per cent and government can meet the entire cost of setting up that scheme,” Mr Mukasa said.

He also said the pay raise should factor in a cover for the annual inflationary changes to enable workers meet the 5 per cent contribution obligation to the pension scheme.

The minister, who was speaking at a thanksgiving ceremony of Mr John Ndyomugyenyi, the national chairman of Uganda Taxi Operators and Drivers Association (Utoda), at All Saints Church in Kabale Municipality on Thursday, assured the congregation that the pay raise will motivate public servants.

He said through the Ministry of Finance, government is looking for areas within the budget to find money.

“We are looking further into some of those areas where we can raise funds within the budget to ensure workers get paid. In any case a commitment has been made by the President but also cabinet so I don’t see us backtracking,” he said, adding that the only thing government can do is to raise the money.

On Thursday last week, this newspaper revealed the Shs1.8 trillion that the salary review committee proposed for a pay raise for government workers is not included in the Budget Framework Paper.

However, Mr Mukasa said when the frame work paper was made, the money that could be released for salary enhancement was less than what we expected but he indicated that discussions are going on to get the money.

Also, Finance Minister Matia Kasaija has since said he had not decided on the pay raise for civil servants ahead of the 2018/19 Financial Year.

In the just concluded year, a number of civil servants, including doctors, judicial officers and state prosecutors went on strike, demanding decent salaries.

State Minister for Finance David Bahati, who also attended the service, asked Christians to move on after Parliament finalised with amending Article 102b of the Constitution.

While delivering his speech, he announced a contribution 100 bags of cement towards the church construction.

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