Free Access | 2024-04-12

EFFECTIVENESS OF THE PUBLIC PAYROLL DECENTRALISATION REFORMS IN UGANDA

Authors/Editors: Madina M. Guloba (PhD) ,  Musa Lwanga ,  Ezra F. Munyambonera

Abstract:

Following the Public Finance Management (PFM) Reform Strategy (2011/12 - 2016/17), the government of Uganda decentralised the management of the public payroll and salary processing system in 2014. This was aimed at addressing deficiencies such as consistent delayed payments of salaries, persistent wage shortfalls, errors and inaccuracies arising from the management of a centralised payroll. In addition, the process of correcting errors and inaccuracies on the centralised payroll was lengthy leading to constant reports of non-existent employees. This study examines the extent to which the decentralisation of payroll management and salary processing has achieved its intended objectives. Findings reveal that there has been remarkable improvement in the key indicators of measuring efficiency, that is: increased awareness by teachers of the new mechanisms of the reform (95 percent), significant reductions in cases reporting of missing salaries (3.6 percentage point improvement) and reduction in cases reporting over payment. Furthermore, incidences of salary arrears have declined since the reform was introduced to 16 percent from 23 percent before the reform. Less teachers are being erroneously deleted from the payroll, from 11 percent prior to the reform to 4 percent after its introduction. The reform has enabled teachers to correct errors and omissions related to their salaries much faster (from 65 percent to 59 percent before and after the reform respectively. However, challenges of travelling long distances to districts, corruption at district level, and high absenteeism of district officials still impede the process of reporting and correcting errors.