Governor Abdulrahman Abdulrazaq of Kwara State has approved a three-month financial bonus for civil servants, equivalent to their Pay-As-You-Earn (PAYE) tax obligation.
The bonus, aimed at supporting state and local government workers, will run from October to December 2024. This emergency measure, announced by Dr. Hauwa Nuru, the Commissioner for Finance, was introduced as a cushion against the impact of the recently implemented minimum wage adjustments on workers’ take-home pay.
Despite expressing appreciation, Kwara’s organized labour unions, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), have requested a 50% tax reduction instead of the temporary bonus. They argue that a tax cut would better address the ongoing economic challenges and support workers long-term.
In a letter of appreciation dated November 4, 2024, and signed by state chairmen of the NLC and TUC, the labour unions acknowledged the governor’s support but urged him to consider a more sustainable approach. They also requested the governor’s intervention to address outstanding issues, particularly concerning pensioners who are yet to benefit from the minimum wage adjustment.
Labour leaders noted recent discontent among workers regarding high tax deductions following the new minimum wage’s implementation, which they claim diverges from the terms agreed upon during negotiations. Additionally, they highlighted the need for immediate relief for pensioners, who have not received adjustments reflecting the new wage structure, warning that unresolved issues could lead to industrial disharmony.