Waziri Mayai Wa Maradhi
JF-Expert Member
- Jan 28, 2026
- 300
- 80
In response to teacher concerns about higher tax deductions, the Teachers Service Commission (TSC) has provided an explanation for the changes to Pay As You Earn (PAYE) deductions included in the June 2026 payment.
The Commission said in a statement that the adjustments were made to address a payroll system problem that had allowed teachers to receive a double tax break on National Social Security Fund (NSSF) contributions.
TSC claims that the anomaly happened when the Integrated Personnel and Payroll Database (IPPD) system was reconfigured in response to changes made in accordance with Section 7 of the Tax Laws (Amendment) Act, 2024.
Employee payments to the Social Health Insurance Fund (SHIF) and the Affordable Housing Levy (AHL) Fund were excluded from income tax under the modifications.
According to TSC, the payroll system was modified to apply the new tax exemptions in accordance with the law and for the benefit of its workers.
Nevertheless, NSSF contributions that were previously set up as tax-exempt were unintentionally re-captured for tax relief reasons during the procedure.
According to TSC, it found the issue during regular payroll system assessments and promptly corrected it in the June 2026 pay cheque for both Secretariat employees and teachers.
Consequently, PAYE deductions were modified to conform to the accurate tax calculation as mandated by the legislation.
The Commission said in a statement that the adjustments were made to address a payroll system problem that had allowed teachers to receive a double tax break on National Social Security Fund (NSSF) contributions.
TSC claims that the anomaly happened when the Integrated Personnel and Payroll Database (IPPD) system was reconfigured in response to changes made in accordance with Section 7 of the Tax Laws (Amendment) Act, 2024.
Employee payments to the Social Health Insurance Fund (SHIF) and the Affordable Housing Levy (AHL) Fund were excluded from income tax under the modifications.
According to TSC, the payroll system was modified to apply the new tax exemptions in accordance with the law and for the benefit of its workers.
Nevertheless, NSSF contributions that were previously set up as tax-exempt were unintentionally re-captured for tax relief reasons during the procedure.
According to TSC, it found the issue during regular payroll system assessments and promptly corrected it in the June 2026 pay cheque for both Secretariat employees and teachers.
Consequently, PAYE deductions were modified to conform to the accurate tax calculation as mandated by the legislation.
