Abia State Governor, Alex Otti, has addressed concerns surrounding salary deductions for some civil servants in the state.
During his monthly media interaction at the Government House in Umuahia, Otti explained that investigations revealed the issue was due to a change in tax rates.
“A lot of people who felt their salaries were being reduced, when we investigated those complaints, we found that what happened was that before now an old tax rate was being applied. The 2018/2019 tax rate was being applied and there was a 2021/2022 tax law, which of course, has come into effect,” Otti said.
He further clarified, “I find it difficult to accept that somebody is pinching salaries, then how do you even do it, because the money leaves the account of the state and hits the account of the beneficiary. So, at what point would somebody deduct the salaries, and if you deduct, where do you take it to?”
Otti also addressed claims of salary disparity in some Local Government Areas, attributing it to tax deductions using the current rate. He explained that the government has a policy allowing overtime allowance for civil servants who perform extra duties.
He stated, “If you were getting paid overtime and you were getting some overtime now the government says you are not supposed to work overtime. Except if there is a need for that and it is the government that would ask you to do that. I think that is what people are mistaking for salary being deducted.”
Regarding the minimum wage, Otti stated that a committee has been set up to address the issue, awaiting further clarification from the Federal Government.
He said, “You know the minimum wage announcement was just about the minimum wage of N70,000. What that means is that every other person’s salary would go up. So, it is not just going to be a minimum wage for civil servants every other salary would be adjusted accordingly.”
Otti assured that the government is working with the Nigerian Labour Congress to find a solution within the state’s resources. He also discussed the distribution of the Federal Government’s rice palliative to the poorest citizens and low-ranking civil servants.
