The Salaries and Remuneration Commission (SRC) projects a sharp fall in counties’ wage-bill-to-revenue ratio to 35.38 per cent in the third quarter of the 2024/2025 financial year, down from 43.34 per cent in the previous quarter.

The national government’s ratio is also expected to drop to 26.46 per cent from 28.02 per cent over the same period, according to the commission’s Third Quarter Wage Bill Bulletin released on Monday, September 8.

During the quarter, SRC received 30 pay-related requests from public service institutions with a total cost implication of about Sh411.7 million.

The commission approved Sh281.4 million, or 68.4 per cent of the requested amount.

Allowances and benefits accounted for the largest share of requests at 76 per cent, followed by performance and productivity at 10 per cent, collective bargaining negotiations at 7 per cent, and job evaluation and salary structures at 7 per cent.

“The downward trend in the wage-bill-to-revenue ratio reflects ongoing efforts to ensure fiscal sustainability in the public service,” the commission noted.

The bulletin shows the wage bill for county governments is projected to fall from Sh63.63 billion in the second quarter to Sh54.66 billion in the third quarter.

For the national government, the wage bill is expected to drop from Sh153.71 billion to Sh130.79 billion.

The number of public service employees crossed the one million mark in 2024, reaching 1.023 million, with the Teachers Service Commission (TSC) remaining the largest employer.