By Chisomo Phiri
The Civil Servants Trade Union (CSTU) has urged government to reconsider the newly revised Pay As You Earn (PAYE) structure, arguing that the adjustments will reduce workers’ disposable incomes.
CSTU secretary general Titha Gomani says the union made the appeal during a meeting with the Government Negotiating Team (GNT) held in Lilongwe on Tuesday.
According to Gomani, civil servants are already struggling to meet basic needs due to the continued rise in the cost of goods and services.
She says: “The revised PAYE structure will further reduce civil servants’ take-home pay, which is demotivating for the workforce.”
Gomani adds that the GNT indicated it would respond to the concerns after holding consultations with relevant authorities.
When contacted, GNT chairperson Bright Kumwembe confirmed the meeting with the CSTU but declined to provide further details.
Under the revised PAYE system, workers earning K170,000 or less will no longer pay income tax, following an adjustment of the zero-rate band from K150,000.
However, incomes between K170,000 and K1.57 million will now be taxed at 30 percent, those up to K10 million at 35 percent, and a new 40 percent rate will apply to earnings above that threshold.
