Understanding the One Third Rule for Salary Deductions in Kenya
In Kenya, the Employment Act of 2007 safeguards employees’ rights by limiting the amount that can be deducted from their salaries.
According to this law, employers are prohibited from deducting more than two-thirds of an employee’s basic pay.
This provision is commonly known as the One Third Rule.
What is the One Third Rule?
The One Third Rule states that the Teachers Service Commission (TSC) in Kenya shall only effect deductions, both statutory and voluntary, up to a maximum of two-thirds (2/3) of an employee’s basic salary through the checkoff facility.
This means that any deductions made from an employee’s salary should not exceed one-third (1/3) of their basic pay.
Why does the One Third Rule exist?
The One Third Rule exists to protect employees from unfair deductions that could leave them financially strained.
By limiting the amount that can be deducted, the law ensures that employees are left with a reasonable portion of their salary to meet their basic needs.
How does the One Third Rule affect employees?
For employees, the One Third Rule provides a sense of financial security.
It ensures that they will always have at least two-thirds of their basic salary available to cover their living expenses.
This rule also prevents employers from making excessive deductions that could harm an employee’s financial well-being.
Responsibility of Third Parties
Third parties, such as financial institutions or insurance companies, are responsible for ensuring that any proposed deductions from individual employees meet the one-third (1/3) requirement as provided for under the Employment Act (2007).
They must also confirm the employee’s ability to meet their obligation after the deduction is made.
Consequences of Violating the One Third Rule
Employers who violate the One Third Rule by making excessive deductions can face legal consequences.
Employees have the right to seek redress through the courts or relevant authorities if they believe their rights have been infringed upon.
How to Ensure Compliance
To ensure compliance with the One Third Rule, employers should carefully review any proposed deductions to ensure they do not exceed the limit set by the law.
They should also communicate clearly with employees about the deductions being made and seek their consent where necessary.
In conclusion, the One Third Rule in Kenya is an important provision that protects employees from unfair deductions.
By limiting the amount that can be deducted from an employee’s salary, this rule ensures that employees are left with enough money to meet their basic needs.
Employers and third parties should ensure compliance with this rule to avoid legal issues and uphold the rights of employees.
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Mr. Weldon Kosgei, a dedicated educator with the Teachers Service Commission (TSC) in Kenya, brings years of experience and a deep love for education to his role at TSCNewsToday.co.ke. He provides insightful and timely updates on TSC policies, educational trends, and best practices, making his articles valuable resources for educators and administrators. Mr. Kosgei’s commitment to enhancing education shines through in his writing, connecting and inspiring the teaching community across Kenya.
