Adamawa State Clarifies Salary Deductions for Civil Servants/Digital News & Magazine

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In response to the recent concerns raised by Adamawa State civil servants regarding deductions from October salaries, we wish to clarify that these are statutory deductions in accordance with Federal and State regulations. The deductions are as follow:

  1. Income Tax Deductions (PAYE)
  2. National Housing Fund (NHF) – 2.5% Contribution
  3. Adamawa State Health Insurance Contributory Scheme.
    Your dissatisfaction regarding deductions from the October salaries result from unpaid contributory National Housing Fund. PAYE and the State Health Insurance Contributory Scheme for three consecutive months. Adhering to government policy neccessatated these payments.
    Income Tax Deduction (PAYE):
    The Pay As You Earn (PAYE) income tax is deducted in line with the Personal Income Tax
    Act (PITA) 2011 (as amended). This law mandates tax on individual earnings from business or employment across Nigeria, based on specified income rates. Contrary to reports, there was no blanket N40,000 deductions across the board; this misinformation is intended to
    misrepresent the government’s actions. PAYE is a federal mandate, not a state policy, and is
    uniformly enforced nationwide for all civil servants, federal and state alike, as well as private sector employees.
    National Housing Fund (NHF) Deduction:
    The NHF deduction, set at 2.5%, is a compulsory savings scheme established to assist civil
    servants in accessing housing loans for construction or renovation. This deduction, administered by the Mortgage Bank, provides civil servants with long-term benefits in securing affordable housing.
    Adamawa State Health Insurance Contributory Scheme:
    Under the leadership of Governor Ahmadu Umaru Fintiri, the Adamawa State Health
    Insurance Contributory Scheme is a key initiative that has made healthcare more affordable for
    all civil servants. This scheme, acclaimed by workers throughout the state, is part of the
    government’s commitment to improving the health and well-being of the workforce. We encourage all civil servants and concerned citizens to seek clarification from relevant authorities before expressing concerns publicly. Governor Ahmadu Umaru Fintiri’s administration remains steadfast in its dedication to transparency, fairness, and workers’ welfare.
    Points to Note:
  4. Income Tax is Mandatory: PAYE deductions are compulsory for all working citizens,
    regardless of their sector or position. Section 87 and 88 of the PITA Act 2011 empowers State Internal Revenue Services to administer this Tax.
  5. Alignment with Government Policy: The current administration upholds these deductions in alignment with federal regulations and policy requirements.
  6. Worker-Friendly Administration: Governor Fintiri’s administration is fully committed to safeguarding the rights and well-being of all employees.
  7. Minimum Wage Commitment: In a demonstration of this commitment, Adamawa
    State has commenced payment of the N70,000 minimum wage, underscoring the government’s dedication to fair and improved compensation.
    We thank you for your understanding and urge open communication on these matters.

Humwashi Wonosikou
Chief Press Secretary to the Governor
01:11:2024

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