Private security firms given 7 days to impliment new minimum wages
Private security firms have seven days to commit themselves to paying their guards the newly gazette salaries, according to a notice by the Private Security Regulatory Authority (PSRA).
The authority has drafted a legal commitment form that the directors of each private security firm must sign committing to pay guards operating within Nairobi, a basic minimum wage of Sh30,000 and Sh27,183 for those operating outside the Nairobi metropolitan area.
The directors will be required to provide evidence of the same by availing a copy of the latest payslip for its security guards.
Failure to fulfil the demands of the commitment may result in legal consequences including fines, penalties and potential cancellation of their operating licenses.
“Any Private Security Company that fails to submit a duly signed copy of the Legal Commitment within the next 7 days shall be subjected to a statutory review of its registration and licensing status in accordance with section 32 of the Act,” the authority said.
Firms will not be able to hide the number of guards employed at their companies as the same list is required by the authority for registering and processing their Guard Force Numbers.
The move follows the government’s efforts to regulate the sector in recognition of its important complementary role in the management of security in the country amidst concerns that the new pay may not be viable and risks sending many firms into bankruptcy.
Two years ago, the Ministry of Labour set the minimum wage for private security guards as sh16,959 in the three cities of Nairobi, Kisumu, Mombasa and Nakuru.
Under the Labour Ministry’s guidelines, a security guard working in former municipalities was to earn a minimum of sh15,722 while their counterparts in other areas were expected to earn sh9,672 every month.
In November last year, North Rift Security Firms went to court protesting the new salary announced by PSRA and obtained a court order stopping the move pending a hearing and determination of the matter.
The association later withdrew the case and the file was closed.
Under the new pay, the guards will receive sh18,994 as minimum pay, a house allowance of Sh2,849.11 and an overtime allowance of Sh8,156.81 totalling Sh30,000 per month.
The statutory deductions will be National Social Security Fund (sh1,080), Social Health Insurance Fund (Sh825), Pay as You Earn (Sh1,229) and an affordable housing levy of (sh450).
Under the new regulations, any employer violating the new regulations will be liable to a fine of sh2 million.
According to Section 9 (q) of the Act, which mandates the Authority to set standards that ensure compliance with minimum wage requirements, all private security companies must sign and submit to info@psra.go.ke a copy of the attached Legal Commitment to pay the Government to set minimum wage for private security guards as stipulated in Legal Notice PSRA/005/2023.
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