Mlusu arriving at the parliament for budget presentation this year

BLANTYRE-(MaraviPost)—Civil servants across the country have taken a swipe at Tonse Alliance government for failing to implement a restructured Pay As You Earn (PAYE) as outlined in the 2021/2022 bational budget.

Presenting a budget in parliament in May this year, Finance Minister brought in duty free week, presented a restructured Pay As You Earn (PAYE) among various new tax measures.

“Government has now introduced two new Pay As You Earn (PAYE) brackets of 25 percent for incomes between K100,000 to K1.0 million per month and of 40 percent for incomes of more than K6.0 million per month

“Accordingly, the new monthly PAYE schedule will be K0 to K100,000 at 0 percent; between K100,000 to K1.0 million at 25 percent; between K1.0 million to K3.0 million at 30 percent; between K3.0 million to K6.0 million at  35 percent; and from K6.0 million and above at 40 percent,” he said adding that the new measure will promote distribution of wealth in the country and increase disposable income for all low income earners.

However, reports reaching Maravi Post indicate that the September payslips do not reflect the change in PAYE as indicated in the budget.

Some of the civil servants who receive their salaries through district councils have told Maravi Post that there is a deficit of about K17 000 if the restructured PAYE is really incorporated.

“According to the money we have received, there is no change on the Pay As You Earn (PAYE). Our calculations point to the fact that the government has used the same 30 percent not 25 percent as outlined in the 2021/2022 budget,” said one of the civil servants on condition of anonymity.

However, Maravi Post has it on authority that the pay hike has been implemented in the September salaries, including salary arrears for the same.

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