TSC Explains PAYE Adjustments in June 2026 Payroll After System Anomaly
The Teachers Service Commission has addressed concerns regarding adjustments to Pay As You Earn deductions reflected in the June 2026 payroll, clarifying that the changes resulted from a system reconfiguration anomaly that has since been corrected.
Following the enactment of Section 7 of the Tax Laws Amendment Act 2024, which exempted employee contributions to the Affordable Housing Levy Fund and the Social Health Insurance Fund from income tax, the System Administrator of the Integrated Personnel and Payroll Database reconfigured the payroll system to implement the tax exemptions in compliance with the law.
During the system reconfiguration process, an unintended anomaly occurred. In addition to AHL and SHIF contributions, National Social Security Fund contributions, which had already been configured as tax-exempt in the payroll system, were inadvertently re-captured for tax relief purposes. This resulted in the application of duplicate tax relief on NSSF contributions for all TSC employees.
Through its routine payroll system reviews, the Commission identified the anomaly and immediately took corrective action in the June 2026 payroll for both Teachers and Secretariat staff. The PAYE deductions were adjusted to align with the correct tax computation as provided for under the law.
The Commission clarified that the PAYE adjustment reflected in the June 2026 payroll arose from the correction of the payroll system configuration and was necessary to ensure accurate computation of Pay As You Earn deductions going forward.
TSC regretted any inconvenience or concern that the adjustment may have caused to its employees and appreciated their understanding.
Teachers with concerns regarding the deductions have been advised to seek clarification from the Commission’s payroll department. The Commission continues to ensure accurate payroll processing in line with statutory requirements.
For more information, contact the TSC payroll department or visit the nearest TSC office.
Source: Teachers Service Commission
