Cabinet at its 12th meeting this week approved Higher Salaries Commission Policy and review of Higher Salaries Commission Act.
The Policy will enable the formulation of relevant legislative mechanisms to re-establish the Higher Salaries Commission.
The Commission was previously established in 1983 under the Higher Salaries Commission Act to consider and determine the salaries of chief executive officers of public enterprises, statutory bodies and municipal councils (formerly Town Clerks).
The Act was amended in 2011 and the Commission abolished.
However, the 2011 amendment made provision for the functions of the Commission to be carried out by the Prime Minister and Minister responsible for Public Enterprises, in determining the salaries of CEOs of public enterprises.
The amendment required the Minister to obtain an independent review of salaries and benefits for the position before he made a recommendation to the Prime Minister.
For other statutory agencies, the 2011 amendment required the Minister responsible for appointing a board or Commission to seek an independent review of salary and benefits for the CEO, before making a recommendation to the Prime Minister for that CEO’s salary and benefits.
For municipal councils, the Minister for Local Government was required to obtain an independent review of salaries and benefits before making a recommendation to the Prime Minister on the salary for that CEO.
Cabinet recognises that there must be a central coordinating mechanism for salaries of chief executives of public enterprises, statutory agencies, and municipal authorities and approved the Higher Salaries Commission Policy which will guide the determination of salaries of these executives.
The Policy will also guide the Office of the Solicitor – General in reviewing the law, eliciting public submissions via consultations, and drafting a Bill to revive the Commission.