Following complaints by different lecturers that the salaries they have been receiving, since the implementation of the Integrated Payroll and Personnel Information System (IPPIS), is lower than their initial pay, the Federal Government have explained why.
Recall that the lecturers complained about not receiving full salaries in February, March and April, demanding explanations.
A statement by the accountant-general of the federation, Ahmed Idris, explained that with the IPPIS, the “right deductions”, covering several subheads were now being made.
Henshaw Ogubike, director, information, press and public relations in the office of the AGF, issued the statement on behalf of Idris.
“The attention of the Office of the Accountant General of the Federation (OAGF) has been drawn to series of reports on claims by tertiary institutions unions, led by ASUU, that IPPIS was deducting their salaries and allowances to the extent that their take home is now only 50% or less of what they earn,” the statement read.
“It is pertinent that the Office of the Accountant General of the Federation (OAGF) puts the records straight for the interest of the general public and majority of staff of tertiary institutions that have displayed unparalleled understanding and cooperated with IPPIS till date. We hereby state as follows:
“The Pay As You Earn (PAYE) Tax is a statutory tax deductions paid by all salary earners. IPPIS applied the correct rate in compliance with Section 34 of the 6th schedule on personal income tax (Amendment) Act of 2011. Prior to migration to IPPIS, the rate of tax being applied by tertiary institutions was not correct, leading to underpayment of PAYE Tax.
“It is important to note that all states governments of the federation made claims on the federal government to pay the differential arising from underpayment of tax by these institutions. The federal government has paid several billions on behalf of these institutions because of their underpayment of PAYE Tax. The request by the tertiary institution unions to formalize tax evasion through IPPIS is not only untenable, but unpatriotic request to violate extant laws on tax.”
Idris further said that lecturers would be able to access loans to own their personal house after retirement due to deductions.
“NHF Deductions: The National Housing Fund (NHF) is 2.5% of basic salary. This is another statutory contribution backed by the Act of National Assembly,” the statement read.
“This is a savings contribution by all federal employees to enable them have access to short life loans to own their personal houses. These savings contribution are refundable with interest either at retirement or exit from being an employee of the federal government.
“The ASUU is bringing claims that those laws should not be applicable to them and thereby should be exempted or be made optional for them. The request for breach of Act of Parliament is not within the ambit of the IPPIS or the (OAGF). They have been advised to approach the National Assembly for amendment of the Act.
“Another issue raised by the unions is the Employees’ Pension Contribution deductions. Employees’ Pension Contribution 7.5%. The ASUU claim that the Employee Contributory Pension should be based on basic salary and not on consolidated salary and it has increased their employee deductions thereby reducing their take home.
“This is a penny wise argument not expected from Ivory Tower. The Consolidated salary is what is applicable to determine employee’s contribution of all Federal employees’ as Salaries Income and Wages Commission (SIWC) have consolidated salary without the composition. The actual amount contributed by the employee determines what the Government contributes as well. Deduction is in line with the Pension Contributory Act.
“On payment of allowances, it should be stated that this is based on the salary structure as approved by Salaries, Incomes and Wages Commission (SIWC). However, the OAGF has advised the tertiary institutions academic unions to approach the Salaries, Incomes and Wages Commission (SIWC) to formalize any agreement on salaries and allowances that they claim to have been approved for them. This is because the Salaries, Incomes and Wages Commission (SIWC) is the only body authorized by law to prescribe salary structure and issue circulars for all federal government employees in Nigeria, while Revenue Mobilization, Allocation And Fiscal Commission is the sister body that is authorized by law to issue circular on payment of salary and allowances to political office holders.
“Any other salaries and allowances approved by any other agency in Nigeria which are not formalized by these two agencies will amount to illegal payment. Therefore, ASUU and other unions are expected to understand this. The fact that they arm-twisted their institutions to pay them these allowances does not translate to legality.”