Clarity on Salary Deductions
Abia State Governor, Alex Otti, recently addressed concerns regarding salary deductions among civil servants. During his monthly media interaction at the Government House in Umuahia, Governor Otti clarified that these deductions were not arbitrary but stemmed from a necessary adjustment in tax rates.
Tax Adjustments Impacting Salaries
Governor Otti explained that the shift from the 2018/2019 tax rates to the current rates led to apparent reductions in take-home pay. He emphasized that this was a transition to newer tax laws, specifically the 2021/2022 tax legislation, which is now fully implemented. This change aims to align the state’s tax policy with current financial realities.
Dispelling Rumors of Unfair Deductions
Addressing rumors of unfair salary cuts, Governor Otti reassured that the process is transparent and audited. He questioned the feasibility of illicit deductions, pointing out the direct transfer mechanisms from state accounts to individual beneficiaries. His administration also investigated allegations of salary disparities across various local governments and found them to be unfounded.
Policy on Overtime Allowances
The governor also touched upon changes to overtime policies. Previously, overtime allowances were more freely given, but now they are approved only when deemed necessary by the government. This has led to misunderstandings among employees who perceived these changes as arbitrary deductions.
Setting Up for Minimum Wage Adjustments
In response to the national discussion on minimum wage increases, Governor Otti announced the formation of a committee to review the potential impacts. He anticipates adjustments not just for minimum wage earners but across all salary scales, which will require careful budgetary planning given the state’s limited resources.
Commitment to Transparency and Fair Practices
Governor Otti reiterated his commitment to transparency and fairness in managing the state’s finances. He aims to ensure that all policies, especially those affecting civil servants, are communicated clearly and implemented justly to avoid misinformation and unrest among the workforce.
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