Statement on Adjustment of Pay As You Earn (PAYE) in June 2026 payroll for TSC employees.
Statement on Adjustment of Pay As You Earn (PAYE) in June 2026 payroll for TSC employees.
The Teachers Service Commission (TSC) has received concerns, regarding adjustments to Pay As You Earn (PAYE) deductions reflected in the June 2026 payroll.
Following the enactment of Section 7 of the Tax Laws (Amendment) Act. 2024. which amended Section 15(2) of the Income Tax Act to exempt employee contributions to the Affordable Housing Levy (AHL) Fund and the Social Health Insurance Fund (SHIF) from income tax, the System Administrator of the Integrated Personnel and Payroll Database (IPPD) reconfigured the payroll system to implement the tax exemptions in compliance with the law and for the benefit of TSC employees.
During the system reconfiguration process, an unintended anomaly occurred whereby. in addition to AHL and SHIF contributions, National Social Security Fund (NSSF) contributions which had already been configured as tax-exempt in the payroll system 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.
Through its routine payroll system reviews, the Commission identified the anomaly and immediately took corrective action in the June 2026 payroll for both Teachers and Secretariat. Consequently, the PAYE deductions were adjusted to align with the correct tax computation as provided for under the law.
The Commission wishes to clarify that 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 regrets any inconvenience or concern that this adjustment may have caused to TSC employees and appreciates their understanding.
