Kwara State Governor, Abdulrahman Abdulrazaq, has recently approved a financial bonus equivalent to the monthly Pay-As-You-Earn (PAYE) tax obligations for all civil servants, including Local Government workers, as an emergency support measure. This initiative is designed to assist employees during a transitional period following the implementation of a new minimum wage. According to Dr. Hauwa Nuru, Commissioner for Finance, this decision is intended to alleviate the financial constraints brought about by the correct application of PAYE, which is aligned with the Personal Income Tax Act. The bonus will be effective from October and is set to last for three months until December 2024, highlighting the state’s commitment to supporting its workforce during challenging times.
The approval of this financial bonus comes in response to concerns raised by organized labor unions in the state, specifically the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC). Last week, these unions expressed dissatisfaction over the high taxes being deducted from workers’ salaries following the implementation of a newly approved minimum wage of N70,000. Labour leaders have indicated that the deductions resulting from the PAYE tax system were not in line with previous agreements made during wage negotiations, raising issues regarding the equitable treatment of workers under the newly established compensation structure for public sector employees.
The joint statement from the state’s organized labor called for the immediate reversal of the new tax regime, citing fears that the financial strain associated with the added taxes could lead to industrial disharmony. Additionally, the labor groups emphasized the state’s neglect in implementing the approved minimum wage for pensioners, labeling this oversight as unjust and urging the government to rectify these concerns promptly to maintain harmonious relations between the workforce and the administration. The urgency of these appeals reflects the precarious position many workers find themselves in due to ongoing economic challenges, most notably the rising cost of living.
In addressing these labor concerns, the Finance Commissioner also urged workers to register with the Kwara State Residents’ Registration Agency immediately. This registration is crucial, as those who do not comply will be ineligible to receive the bonus during November and December. Additionally, the government has agreed to suspend further deductions from workers’ salaries and refund any special levy that has been deducted, a move that aims to alleviate some of the financial burdens workers are currently facing. These measures indicate a responsive approach by the state government to the demands of labor unions, aiming to improve the welfare of civil servants amidst a backdrop of economic uncertainty.
Governor Abdulrazaq’s actions regarding the financial bonus and tax adjustments illustrate his dedication to the welfare of the workforce in Kwara State. The approval of the bonus not only serves as an immediate relief measure, but also demonstrates a broader commitment to enhancing the living standards of civil servants, especially as they adjust to the adjustments following the new minimum wage law. The proactive stance taken by the governor and his administration towards labor issues illustrates a willingness to listen to constituents and enact policies aimed at improving the overall economic stability of workers in the state.
The strategic implementation of these financial measures and the collaboration with labor unions underscore the significance of maintaining dialogues between government authorities and workers. By addressing labor concerns promptly and effectively through financial bonuses and proactive tax reforms, Governor Abdulrazaq aims to foster a sense of confidence within the workforce. In conclusion, while the state faces challenges related to compensation and taxation, the government’s recent decisions are designed to mitigate these hardships and demonstrate a commitment to enhancing worker welfare and stability within the civil service in Kwara State.
