Kwara State Governor Abdulrahman Abdulrazaq has announced the approval of a financial bonus equivalent to the monthly PAYE (Personal Income Tax) obligation for all civil servants in the state, including those in Local Government.
This emergency support measure is set to run for at least three months, aiming to alleviate the financial strain caused by the recent implementation of the N70,000 minimum wage. The announcement was made on Monday through a statement by the Commissioner for Finance, Dr. Hauwa Nuru.
Dr. Nuru explained the rationale behind the bonus, stating, “This bonus has been approved as a buffer to bridge the gap that the correct PAYE deduction may have wrought on the newly implemented minimum wage. It is meant to serve as a soothing balm as workers adjust to the PAYE that was just correctly implemented in line with the Personal Income Tax Act.” The bonus payments began in October and will continue through December 2024, demonstrating the governor’s commitment to supporting the state’s workforce during this transitional period.
The decision follows significant backlash from organized labour groups, including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), who criticized the state government for the increased tax deductions from workers’ salaries following the minimum wage hike. Last week, the State Administrative Committee of the organized labour condemned the new tax regime, claiming it deviated from prior agreements made during negotiations with the workers. They demanded the reversal of the tax implementation to prevent industrial unrest.
In response to the controversy, Dr. Nuru emphasized the importance of registration for eligibility, advising, “Workers who have not registered with the Kwara State Residents’ Registration Agency should do so immediately because anyone without it will not get the bonus for November and December.” Additionally, she announced that labour unions have agreed to refund the special levy previously deducted from workers’ salaries and to suspend further deductions until further notice.
“Governor AbdulRazaq’s directive to deliver this relief speaks volumes about his humanity and his commitment to the welfare of the Kwara workforce,” she added, highlighting the administration’s dedication to addressing the concerns of its public servants.
The Labour Party lauded the governor’s initiative as a crucial step towards easing the financial burdens faced by civil servants amid the new tax structure.
