PAYE reduction: Workers report higher take-home pay, says Oyedele

Taiwo Oyedele

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said that Nigerian workers are now receiving higher take-home salaries due to reduced Pay As You Earn (PAYE) deductions under the new tax laws.

Oyedele took to his X handle on Monday to share employee feedback on the salaries they received in January 2026.

Earlier, he said that about 98 per cent of Nigerian workers will either pay no PAYE tax or pay lower taxes under the new framework.

He said early indications show that the new tax framework is already easing the tax burden on workers, especially those whose taxes are deducted at source by their employers.

He said, “We are pleased to note the feedback from workers who have received their January 2026 salaries and have confirmed a reduction in their PAYE tax, resulting in higher take-home pay under the new tax laws.” He added that the reforms are particularly beneficial for employees whose income tax is deducted directly by their employers.

“To ensure that relevant individuals responsible for implementing these changes for the benefit of employees in their organisations are well informed, the Presidential Fiscal Policy and Tax Reforms Committee is hosting a session for key stakeholders in collaboration with the Joint Revenue Board.”

He said the session scheduled for Wednesday is for HR Directors, Payroll Managers, Chief Financial Officers, Tax Managers, and other Senior Executives responsible for managing employee compensation and payroll tax compliance.

The federal government recently began implementing a new tax reform framework anchored in the Nigerian Tax Act and the Nigerian Tax Administration Act. The reforms were introduced to simplify Nigeria’s tax system, reduce multiple taxation, and promote fairness across income groups.

However, the new regime has met with stiff resistance from the public, who fear it will worsen their cost-of-living crisis.

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