Union of Kenya Civil Servants (UKCS), wants the state to reduce taxes imposed on salaried workers.
Civil servants union urges gov’t to review PAYE deductions
As Kenyans bid bye to 2023, the
The government employees protest that the 30 per cent tax increase in Pay as You Earn (PAYE) has overstrained the workers.
UKCS Secretary General Tom Odege, while addressing the press in Kisumu, earnestly appealed to the government to review the PAYE deductions in the new year 2024.
“We particularly want the Housing Levy removed because we deem it unnecessary. It’s hurting workers,” Odege stated.
The Finance Act 2023 sets the PAYE rate at 32.5 per cent for persons earning between Ksh500,000 and Ksh800,000 a month.
On the other hand, state employees earning above Ksh800,000 are subject to a 35 per deduction in PAYE
This combined with a new housing tax of 1.5 per cent levied on state workers and a medical insurance tax of 2.5 per cent significantly reduces their net income.
“This is why, we are asking the government passionately, with all sense of humility to review the taxes downward,” Odege said.
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