Kwara State Governor Abdulrahman Abdulrazaq has approved a financial bonus for civil servants, including Local Government employees, equal to the monthly PAYE (Pay As You Earn) tax deduction for each worker. The measure, designed to provide emergency financial support, will last for at least three months, according to a statement issued on Monday by the state’s Commissioner for Finance, Dr. Hauwa Nuru.
“This bonus has been approved as a buffer to mitigate the impact of the newly implemented minimum wage on employees’ finances, as the correct PAYE deductions may have created an additional financial burden,” Nuru explained. “It is intended to serve as a supportive measure as workers adjust to the accurate PAYE deductions in line with the Personal Income Tax Act.” The bonus payments will commence in October and continue through December 2024.
The announcement comes on the heels of a recent appeal by the organized labor unions in Kwara, including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC). Last week, the unions expressed concerns over the increased tax deductions from workers’ salaries following the implementation of the ₦70,000 minimum wage. The unions noted that the government’s implementation of the minimum wage differed from the terms agreed upon during negotiations with the labor representatives.
In a joint statement signed by prominent labor leaders—NLC Chairman Comrade Muritala Olayinka, TUC Chairman Comrade Olayinka Onikijipa, Coalition of Health Workers Union’s Comrade Isaac Bolatito, and Joint Negotiation Council’s Chairman and Secretary, Comrades Saliu Suleiman and Tunde Joseph—the labor unions strongly opposed the new tax deductions. “We condemn the recent tax imposed on Kwara State workers and demand a reversal to avoid industrial disharmony,” they stated. Additionally, the unions urged the government to extend the ₦70,000 minimum wage to pensioners, emphasizing the need to alleviate their financial strain.
The unions also called on the state government to rescind the new tax policy and requested that pensioners be included in the wage adjustment plan. They warned that failure to address these concerns could lead to industrial unrest.
In response to these issues, Commissioner Nuru advised workers to ensure they are registered with the Kwara State Residents’ Registration Agency, noting that workers without this registration will not receive the bonus payments for November and December. She added that the labor unions have also agreed to a refund of a special levy previously deducted from workers’ salaries, and further deductions of this levy have been suspended until further notice.
“Governor Abdulrazaq’s decision to introduce this relief underscores his empathy and commitment to the welfare of the Kwara workforce,” Nuru concluded.
