The National Treasury has announced that civil servants' salaries for the month of July will be delayed as the government implements a new payroll system based on the advisory of the International Monetary Fund (IMF). This migration from the old manual Integrated Payroll and Personnel Database (IPPD) to the New Online Unified Human Resource (UHR) system will affect the remittance of July 2023 salaries for all state workers.
The Ministry of Public Service circulated a memo to civil servants, explaining that the delay is due to logistical challenges arising from the system upgrade. The New Online Unified Human Resource (UHR) system aims to improve payroll management and combat financial losses resulting from ghost workers.
The advisory from the IMF received support from the Salaries and Remuneration Commission (SRC), which highlighted that the UHR system will enhance the tracking of national and county government salaries and help close graft loopholes.
The UHR system is a web-based platform that integrates all human resource (HR) data and processes for the public service, streamlining payroll management and facilitating various HR functions. Among its features are a leave module, performance management module, training module, and recruitment module.
This is not the first time government employees have experienced salary delays. In April 2023, a cash crunch led to unprecedented delays in salary remittances. President William Ruto emphasized the government's commitment to prioritize essential state expenditures, such as debt obligations, over civil servants' salaries, leading to delays.
The delayed salaries may pose challenges for civil servants in meeting their monthly financial obligations, including house rents and statutory deductions such as the National Health Insurance Fund (NHIF) and the National Social Security Fund (NSSF). Additionally, civil servants with loans from financial institutions may face difficulties in repaying them due to the salary delays.
While the upgrade to the UHR system holds promise for improving payroll management and curbing corruption, its implementation has resulted in unavoidable delays, impacting thousands of civil servants across the country.