The Teachers Service Commission (TSC) has moved to explain increased Pay As You Earn (PAYE) deductions reflected in the June 2026 payroll, attributing the changes to the correction of a payroll system anomaly that had resulted in an incorrect tax computation.
The commission said it had received concerns from teachers regarding adjustments made to PAYE deductions in their June salaries.
TSC explained that the issue arose during the implementation of provisions under Section 7 of the Tax Laws (Amendment) Act, 2024, which amended 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.
To comply with the law, the Integrated Personnel and Payroll Database (IPPD) system was reconfigured to apply the new tax exemptions for TSC employees. However, the commission said an unintended anomaly occurred during the reconfiguration process.
According TSC Acting Commission Secretary and Chief Executive Officer Eveleen Mitei, 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.
"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," she said.
The anomaly was later detected during routine payroll reviews, prompting the commission to take corrective action in the June 2026 payroll for both teachers and secretariat staff.
"Consequently, the PAYE deductions were adjusted to align with the correct tax computation as provided for under the law," .
The commission emphasized that the June adjustments were not the introduction of a new tax or deduction but rather a correction aimed at ensuring compliance with tax regulations and accurate salary processing going forward.
"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," Mitei added.
TSC expressed regret over any concern or inconvenience caused by the adjustments and thanked employees for their understanding.
"The Commission regrets any inconvenience or concern that this adjustment may have caused to TSC employees and appreciates their understanding," she said.
The clarification comes after teachers across the country raised questions over changes in their June payslips, with many reporting higher PAYE deductions compared to previous months.
