Organised labour in Kwara State called on the state government to promptly reverse the recently imposed tax regime affecting worker’s salaries.
This appeal follows the government’s implementation of a new minimum wage of N70,000 for the lowest-paid employees within the public service.
Labour leaders expressed their disappointment that the state government chose to impose a significant percentage tax deduction from worker’s salaries, contradicting prior negotiations which had promised tax relief in conjunction with the new minimum wage.
The call to action came during a joint meeting of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) in Ilorin on Thursday.
In a joint statement, the labour representatives demanded a reduction in the tax percentage deducted from workers salaries.
The statement, released to our correspondent on Friday, was co-signed by NLC Chairman Muritala Olayinka, TUC Chairman Olayinka Onikijipa, Coalition of Health Workers Union (COHESU) representative Isaac Bolatito, and Joint Negotiation Council leaders Saliu Suleiman and Tunde Joseph.
In addition to the tax concerns, the organised labour lamented the government’s failure to extend the new minimum wage of N70,000 to pensioners in the state.
They urged the government to implement a 12-month tax holiday for workers on the newly adjusted minimum wage as a means of providing relief.
The labour unions have warned that if their demands are not addressed swiftly, it could lead to industrial unrest.
“The SAC of Joint Labour Centres met today to review the outcome of the new minimum wage payment to Kwara workers as approved by His Excellency, Governor AbdulRahman AbdulRazaq,” the statement noted.
“The committee observed with dismay the notorious percentage tax deducted from our members.
This was at variance with government/labour discussions at the negotiation table for tax relief on the added sum or status quo ante on the percentage tax deduction,” the statement continued.
The statement further stated, “In view of the above, the committee resolved that the government should grant a tax holiday to Kwara State workers on the added sum for at least 12 months to serve as succour for workers in the state, and to review downward the tax percentage on worker’s salaries.”
The NLC-TUC Joint State Administrative Council also expressed deep concern over the non-implementation of the 2024 N70,000 minimum wage for pensioners.
They urged the state government to address the plight of pensioners to prevent potential industrial disharmony.
Governor AbdulRahman AbdulRazaq had recently approved the N70,000 minimum wage for the state’s lowest-paid workers, as announced by the Federal Government of Nigeria.
The state Commissioner for Finance, Dr. Hauwa Nuru, confirmed that the wage would be implemented across the Kwara State public service, effective October 2024.
“This decision, which includes consequential adjustments to the relevant salary structures, was made after a successful tripartite meeting between government representatives, the leadership of the Organised Labour in Kwara State—NLC, TUC, and the Joint Negotiating Council (JNC)—and representatives from the organized private sector,” the Commissioner stated.
