The Kwara State Government has begun implementing the newly approved minimum wage, which includes a wage adjustment agreed upon with labour unions and the private sector.
As revealed in a press statement signed by the Head of Corporate Affairs of the Kwara Internal Revenue Services, Funmilola Oguntunbi, and made available to Royal FM, the initiative is designed to prioritise worker welfare and promote financial stability within the state’s workforce.
In line with the law, workers’ gross income is subject to standard statutory deductions, including personal income tax, pension contributions, National Health Insurance, the National Housing Fund, and insurance where applicable.
State officials highlighted that under the Personal Income Tax Act (PITA) of 2011, personal income tax deductions are mandatory for all states, including Kwara, and any failure by employers to apply the correct tax deductions could lead to penalties.
The act requires employers to calculate deductions based on a graduated tax rate starting from 7 percent for incomes up to N300,000 and capping at 24 percent for earnings over N3.2 million.
