TSC explains increased PAYE deductions in June payroll

In a statement issued on Tuesday, the Commission attributed the changes to the correction of an anomaly in the payroll system that had resulted in teachers benefiting from a duplicate tax relief on National Social Security Fund (NSSF) contributions.

According to TSC, the anomaly occurred during the reconfiguration of the Integrated Personnel and Payroll Database (IPPD) system following amendments introduced under Section 7 of the Tax Laws (Amendment) Act, 2024.

The amendments exempted employee contributions to the Affordable Housing Levy (AHL) Fund and the Social Health Insurance Fund (SHIF) from income tax.

TSC said the payroll system was reconfigured to implement the new tax exemptions in compliance with the law and for the benefit of its employees.

However, during the process, NSSF contributions, which had already been configured as tax-exempt, were inadvertently re-captured for tax relief purposes.

"This resulted in the application of a duplicate tax relief on NSSF contribution for all TSC employees," the Commission stated.

TSC said it detected the anomaly during routine payroll system reviews and immediately took corrective action in the June 2026 payroll for both teachers and Secretariat staff.

As a result, PAYE deductions were adjusted to align with the correct tax computation as provided for under the law.

"The PAYE adjustment reflected in the June 2026 payroll arose from the correction of the payroll system configuration and was necessary to ensure accurate computation of Pay As You Earn deductions going forward," the Commission explained.

The Commission regretted any inconvenience caused by the adjustment and thanked teachers for their understanding.

On Friday last week, teachers across the country demanded clarification from the TSC following an unexplained increase in their PAYE deductions. The teachers lamented this adjustment, citing low pay despite rising costs of living.