Organized labour unions in Kwara State have urged the state government to reverse a new tax regime imposed on workers’ salaries following the recent implementation of the N70,000 minimum wage for public service employees. The unions criticized the government for imposing a high tax percentage on workers’ salaries, contrary to previous negotiations promising tax relief as part of the wage adjustment.
After a joint meeting of the State Administrative Council (SAC) of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) in Ilorin on Thursday, union leaders issued a statement calling for an immediate downward review of the tax rate on workers’ salaries. The statement, signed by NLC Chairman Comrade Muritala Olayinka, TUC Chairman Comrade Olayinka Onikijipa, and other labour representatives, also called on the government to extend the N70,000 minimum wage to state pensioners and grant a 12-month tax holiday on the adjusted wages.
“The SAC of Joint Labour Centres reviewed the outcome of the minimum wage payment and observed with dismay the notorious tax deductions from workers’ salaries, which were not agreed upon during negotiations,” the statement read. “We urge the government to reverse the tax hike and provide a tax holiday on the added sum for at least 12 months to ease the financial burden on workers.”
The unions warned that failure to address these concerns could lead to industrial unrest, urging the government to act swiftly to prevent disruptions. Governor AbdulRahman AbdulRazaq recently approved the N70,000 minimum wage for the lowest-paid workers in the state, effective from October 2024, following discussions between the government, organized labour, and representatives from the private sector.
