TSC Admits Payroll Error Behind June Salary Cuts.
The Teachers Service Commission (TSC) has attributed the increase in Pay As You Earn (PAYE) deductions reflected in teachers’ June 2026 payslips to a payroll system error that resulted in the erroneous application of duplicate tax relief on National Social Security Fund (NSSF) contributions.
In a statement issued on Wednesday, the Commission explained that the anomaly arose during the reconfiguration of the Integrated Personnel and Payroll Database (IPPD) system following amendments introduced under the Tax Laws (Amendment) Act, 2024. The Commission noted that the error has since been corrected in the June 2026 payroll.
According to TSC, the Tax Laws (Amendment) Act, 2024 introduced changes requiring payroll systems to accommodate revised tax treatment for statutory deductions. The legislation exempted contributions made to the Affordable Housing Levy (AHL) Fund and the Social Health Insurance Fund (SHIF) from income tax, necessitating updates to payroll processing systems across government institutions.
TSC stated that during the implementation of the revised payroll configuration, an unintended duplication of tax relief on NSSF contributions occurred, resulting in lower PAYE deductions than those prescribed under the applicable tax framework. The Commission indicated that the June 2026 payroll corrected the anomaly by removing the duplicate tax relief, thereby aligning PAYE computations with existing tax legislation.
The adjustment resulted in higher PAYE deductions for teachers and Secretariat staff in the June payroll, leading to reduced net salaries compared to previous months. The Commission maintained that the additional deductions did not constitute the introduction of a new tax but represented the correction of an existing payroll error to ensure compliance with the prevailing tax laws.
The correction prompted widespread concern among teachers after many observed unexpected reductions in their take-home pay. Reports indicated that a majority of affected teachers experienced an increase of approximately KSh108 in PAYE deductions compared to previous months.
A comparison of June payslips showed that some teachers received net salaries of KSh10,334, down from KSh10,442 in previous months, reflecting an additional PAYE deduction of KSh108 following the payroll adjustment.
The revised deductions generated criticism from teachers, with many expressing concern over the absence of prior communication regarding the payroll correction. Some employees questioned why the adjustments were implemented without advance notice, while others raised concerns over the financial impact of the increased statutory deductions amid the rising cost of living.
Read Also: School Heads Rejects Proposal for Standardised School Uniforms, Cites School Identity
TSC reiterated that the payroll adjustment was necessary to ensure accurate computation of PAYE in accordance with the Tax Laws (Amendment) Act, 2024 and other applicable tax provisions. The Commission added that the correction ensures future payroll processing complies with the statutory tax framework governing public sector employees.
The Commission further maintained that the June 2026 payroll reflects the correct application of tax reliefs and statutory deductions following the resolution of the payroll system anomaly.
TSC Admits Payroll Error Behind June Salary Cuts.
Follow Teachers Updates on Facebook, LinkedIn, X (Twitter), WhatsApp, Telegram, and Instagram. Get in touch with our editors at hello@teachersupdates.news.
