Gov. Alex Otti of Abia State has addressed ongoing concerns about salary deductions affecting civil servants in the state. He spoke at the Government House in Umuahia during a monthly media session with reporters.
Otti explained that the government probed complaints regarding the salary deductions and findings indicated that changes in tax rates, specifically from the 2018/2019 tax rate to the current rate has caused discrepancies in salary amounts.
Many individuals believed their salaries decreased but investigations showed that the previous tax rate had been applied.
The governor emphasized that the new tax law from 2021/2022 had taken effect.
He expressed scepticism about claims of salary theft and questioned how such deductions could occur when funds transfer directly from the state's account to beneficiaries' accounts.
In addition, Otti addressed complaints about salary disparities in certain Local Government Areas and stated that these claims were unfounded.
He reiterated that tax deductions under the current rate contributed to the perceived disparities.
The governor announced a new policy that allows overtime compensation for civil servants who perform extra duties at the government's request, clarifying that this might be misinterpreted as salary deductions.
Regarding the minimum wage, Otti mentioned the establishment of a committee to review the situation while awaiting clarification from the Federal Government.
He noted that the recent announcement of a minimum wage of N70,000 would necessitate salary adjustments for all workers, not just civil servants.
Otti confirmed ongoing discussions with the Nigerian Labour Congress to create a feasible solution within the state's limited resources. He assured that the government prioritized addressing the new minimum wage in upcoming budget reviews.
