The Auditor General noted that prior to the salary enhancements for scientists, the government appears to have neglected conducting a comprehensive analysis of the cost implications of these increased wages, particularly the resulting incentive for early retirement and exponential rise in pension liabilities.
Auditor General, Edward Akol 2
A report by the Auditor General
has shed light on a significant disparity in pay within the civil service,
particularly between retired science and arts professionals.
The report, submitted to
Parliament, highlights how the pay gap is even more pronounced when comparing
retirement benefits. For example, while science teachers currently earn 4,000,000
shillings per month, their arts colleagues receive only 1,078,162 shillings.
The difference becomes even
clearer when looking at retirement packages: a science teacher retiring early
could receive a lump-sum gratuity of 172,800,000 shillings, whereas an art
teacher would only receive 46,576,598 shillings. In terms of monthly pensions,
the gap persists, with retired science teachers receiving 1,920,000 shillings
per month, compared to just 517,518 shillings for arts teachers.
“The reduced monthly pension of
a science teacher of UGX. 1,920,000 is more than twice the net pay of a serving
Arts teacher of the same scale,” the Auditor General reads in part.
The report further revealed that
the enhanced retirement package has inadvertently become an incentive for early
retirement, as individuals can secure a better income even after leaving active
service.
This issue has been raised by
district education officers, who reported a growing trend of science teachers
opting for early retirement to take advantage of the lump-sum gratuity
and pension, which they see as a more favourable financial option.
For example, in an interview
with our reporter in September last year, Mercy Orikiriza, Acting District
Inspector of Schools in Ntungamo, expressed concern over the situation. She
highlighted that since the beginning of the year, numerous teachers and
headteachers have raised concerns about the increasing number of science
teachers seeking early retirement.
“This is a serious issue that needs
immediate attention,” Orikiriza told our reporter, highlighting the paradox of
teachers seeking early retirement despite the recent pay increases. She
emphasized the urgency of addressing these concerns to prevent further
disruption in the education sector.
Similarly, the Auditor General
compared the positions of a Commissioner for Science and a non-science
Commissioner to assess how salary differences affect their retirement benefits.
The analysis revealed that a Commissioner with science qualifications earns
10,622,398 shillings per month, while a Commissioner with arts qualifications
earns 1,859,451 shillings.
Further findings showed that upon
retirement, the science Commissioner would receive 462,711,657 shillings in
gratuity, while the arts Commissioner would receive only 80,774,551 shillings.
In terms of monthly pensions, the science Commissioner would receive 5,141,241
shillings, compared to 897,495 shillings for the arts Commissioner.
The analysis further highlighted that
the monthly reduced pension for a science Commissioner—5,141,241 shillings—is
more than three times the net pay of a serving arts Commissioner at the same
rank.
“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,” the report
stressed.
The government, with the
foresight of President Museveni, increased salaries for scientists to attract and retain critical talent, as well as recognizing the
importance of science and innovation in driving the country's development.
However, the Auditor General
noted that before the salary enhancements for scientists, the government
appears to have neglected to conduct a comprehensive analysis of the cost
implications of these increased wages, particularly the resulting incentive for
early retirement and exponential rise in pension liabilities.
In light of these findings, the
Auditor General recommended that the government conduct a comprehensive review
of salary structures and pension terms for civil servants to ensure fairness
and financial sustainability.
Usher Wilson Owere, a private
labour consultant, observes that the salary disparity continues to widen despite
efforts to advise the government on better management, even during his tenure
as a labour union leader. He also highlighted that while the country has
prioritized scientists, the neglect of the arts and humanities has significant
consequences, and a balance must be maintained.
"Now that scientists'
salaries have been increased, we hope the government will begin addressing the
humanities effectively in this budgeting cycle. It's unacceptable for retirees
to earn more than those who are still actively working," he stated.
Owere further pointed out that,
as proposed by the government, it's time to make serious changes to the
retirement schemes and benefits for public officers. He advocated for a new,
sustainable model in which even the workers contribute.
"There are some reforms
they have suggested, and I think there's a bill to this effect. The suggestions
are good, but the question is how they will be implemented. You know, sometimes
good ideas are killed," he remarked.
In 2023, the government
introduced the Public Service Pensions Fund Bill 2023, which mandates that
every public servant contribute 5% of their gross salary to the pension fund
each month. In return, the government will contribute 10% of the employee’s
gross salary, a shift from the current system where the government covers 100%
of the pension for public servants’ retirement.