Govt announces a new pay-slip tax for teachers that will take effect in January 2025.
Next year, teachers will pay higher taxes. Since the government intends to start implementing a new deduction on their paystubs in January, teachers and civil officials would be subject to further hardship if parliament approves Treasury’s request to raise taxes.
The Treasury, under the leadership of CS John Mbadi, has revived several of the Finance Bill 2024’s rejected proposals to aid in government funding.
One of the proposed fees is the Public Officers Medical Scheme Fund, a mandatory deduction that needs to be displayed on paystubs.
All public authorities, including teachers and civil servants, will pay taxes to support the fund.
In addition to AON Minet and SHIF, teachers will now be covered by a third medical plan called the Public Officers Medical Scheme.
In addition to the social health insurance benefit package offered by the Social Health Insurance Act, the Public Officers Medical Scheme Fund will be used to support the establishment of a medical program for public officers.
Next Year, Teachers Will Face Higher Taxes
The percentage of teachers’ salary that will be deducted from their paystubs in order to support the fund is currently unknown.
According to sources, a two percent deduction has been suggested, but the National Assembly will ultimately decide how much should be withheld.
In order for the idea to be implemented in January of the next year, members of the National Assembly have already decided to approve it by December.
In accordance with the constitution, the Treasury launched a public engagement exercise in November.
Public comments, suggestions, or memoranda can be sent to the National Treasury’s Principal Secretary at P.O. Box 30007-00100, Nairobi.
Additionally, it can be emailed to ps@treasury.go.ke with a copy to jona.wala@treasury.go.ke or given in person to the Office of the Principal Secretary, National Treasury Building, Nairobi.
Submissions must be made by November 18, 2024, at 5:00 p.m.
According to the timetable below, public consultations on the aforementioned Public Finance Management (Public Officers Medical Scheme Fund) Regulations, 2024 will also be held in person.
Stakeholder Dates for meeting Time for meeting
1. State Department for Public Service 20th November, 2024
2. Civil Servants Union 20th November, 2024 10.00 am
3. Teacher Service Commission 20th November, 2024 10.00 am
4. Public Service Commission 20th November, 2024 10.00 am
5. Salaries and Remuneration Commission 20th November, 2024 10.00 am
6. Social Health Authority 20th November, 2024 10.00 am
7. Members of the Public 20th November, 2024 10.00 am
Civil servants may also submit their comments through their Union representatives like Knut and Kuppet.
The invitation letters for the meetings shall be hand-delivered to the registered stakeholders before the date of the meeting.
The venue of the meeting will be The National Treasury 5th floor AGDs Board room as indicated in the invitation letter.
Teachers To Be Taxed More Next Year
Govt announces a new pay-slip tax for teachers that will take effect in January 2025.
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