Gov’t Increases Public Service Wage Bill by Shs1.09 Trillion

The government has increased the public service wage bill by more than 1.08 trillion shillings for the 2026/2027 financial year and announced a raft of reforms aimed at strengthening human resource management, accountability and service delivery across the public service. 

Speaking while issuing Establishment Notice No. 3 of 2026 on Human Resource Management in the Public Service, the Minister of Public Service, General Edward Katumba Wamala, said the circular provides key guidelines that will shape public service management during the financial year. 

“As a newly deployed Minister in this important Ministry, I take this opportunity to reaffirm Government’s commitment to building a Public Service that is professional, efficient, accountable, citizen-centred, and responsive to the needs of the people,” Gen. 

Katumba Wamala said. He described the guidelines as part of broader government reforms rather than routine administrative instructions. 

“The guidelines being issued today are therefore not routine administrative instructions; they are part of a wider reform agenda to strengthen discipline, improve service delivery, protect public resources, and support the transformation of the Public Service,” he said. 

The Minister announced that Government has appropriated Shs9.708 trillion for the public service wage bill in FY2026/2027, up from Shs8.621 trillionin FY2025/2026, representing an increase ofShs1.088 trillion. 

He noted that the wage bill has more than doubled since FY2018/2019, when the pay policy principles and long-term pay targets were adopted.

According to the Minister, the enhanced wage bill will support staff already in post, critical recruitment and phased salary enhancement for selected categories of public officers, including deputy chief administrative officers, deputy city and town clerks, assistant commissioners, heads of department in local governments, public officers on salary scale U2, teachers in humanities, TVET instructors, ferry captains, grader operators, mortuary attendants and X-ray attendants. 

He assured other public officers that salary enhancement would continue in phases. 

“The Public Officers not indicated above will be enhanced in FY2027/28. We have kept the promise to enhance salaries in phases, and certainly, we shall do so,” Gen. Katumba Wamala said. 

At the same time, he cautioned accounting officers against unauthorized recruitment. 

“However, I wish to emphasize that wage bill discipline remains a serious Government priority. Recruitment in FY 2026/2027 shall only be undertaken after clearance from the Ministry of Public Service, upon confirmation of both wage availability and vacancies on the approved establishment. Employees recruited without authority will not be cleared for access onto the payroll,” he said. 

The Minister urged accounting officers with approved wage allocations and vacant positions to immediately seek recruitment clearance to avoid unspent wage allocations while creating employment opportunities. 

Gen. Katumba Wamala also announced the operationalisation of the Public Service Pension Fund, established under the Public Service Pension Fund Act, 2025.

“I want to reassure all public officers and pensioners that this reform is intended to strengthen, not weaken, retirement security,” he said.

He explained that officers nearing retirement would receive guidance on available options, while pensioners who retired under the old scheme would continue receiving benefits from the Consolidated Fund. 

The Minister further directed all responsible officers to update employee records on the Human Capital Management System, saying accurate records are critical for migration to the new pension scheme. Contributions to the fund commenced on 1 July 2027, with employers contributing 10 percent and employees 5 percent.

On performance management, Gen. Katumba Wamala said Government is abandoning traditional appraisal methods in favour of a digital Balanced Scorecard framework. 

“Appointing Authorities will no longer accept traditional, unautomated appraisal reports for statutory personnel decisions such as contract renewals, promotions and confirmations. This is intended to strengthen accountability, link individual performance to institutional results and mandate, and ensure that public officers are assessed objectively and fairly,” he said. 

The Minister also directed all Ministries, Departments, Agencies and Local Governments to prepare five-year Client Charters, adopt electronic records management systems, strengthen information security and align institutional human resource policies with national standards. 

Gen. Katumba Wamala called on all government institutions to fully implement the new guidelines.