The Zambia Congress of Trade Union (ZCTU) is elated by the government’s decision to raise the pay as you earn tax exception threshold to K4000 from K3,300.
Speaking in an interview with ZANIS Kitwe today, ZCTU President Nkole Chishimba said the decision is a positive move which will offer relief to workers in the lower income threshold.
He explained that although the tax relief is just about K700, it will go a long to cushion the workers economic hardships.
“We appreciate the increase in the PAYE tax exemption threshold, we know it was not easy for government to arrive at this decision at a time when the economy is badly affected by the Covid-19,’’ Mr. Chishimba said.
And Mr Chishimba said the union will continue with next year’s salary negotiations and ensure that workers get something meaningful.
He however noted that the employers will be treated according to how they are performing as companies are being affected differently by the Covid-19 pandemic.
He noted that some industries are benefiting from the Covid-19 and such companies have no excuse for refusing to give workers meaningful salary increments.
And the Mine Workers Union of Zambia (MUZ) said the K700 gain from the tax exemption will be of great relief to workers in the lower income band at a time when workers are struggling financially due to the effects of Covid-19.
Mr Chewe however noted that workers with higher salaries may not appreciate the move by government as the Pay As You Earn tax on them may be still be relatively high.
And Mr Chewe says it will be difficult to get a fair dear deal in the salary increment negotiations for next year for workers in the mining sector because the mining companies have been heavily affected by Covid-19.
He noted that most mining companies are likely to use the issue of Covid-19 as an excuse for failing to offer meaningful increments which he said would be difficult to refute as it is a reality.
He was however optimistic that that the union will get something better for the workers.
Mr Chewe also explained that the union has not yet started negotiations with any mining company for the next year’s collective agreements.
In the proposed national budget for 2021, government has increased the Pay As You Earn (PAYE) tax exemption threshold from about K3, 300 to K4000.
It’s rare for any government to be praised by a union. This is testimony to how great this government is. This government has ensured the common man on the street is protected and given a chance to make a living. I love my party and government. Meanwhile upnd has mastered the art of losing elections
This union has completely lost direction
Does the buffoon know what the cost of living in Zambia is? How much a family need per month to survive? Sold out buffoons
ZCTU dont just praise. Have you done the calculation and see what is obtaining in reality. The K700 you are talking about is not there ,It is less than that
This threshold is a mockery to entice would be voters.
Come 2022 budget that is when you will see the true colors
Shut these fooools please. What rubbish is this. Can these mwankoles explain how those change benefit anyone who gets k3,300 and below as gross salary as these make the majority of people employed in Zambia. Secondly a maximum of k262.50 tax relief amid increasing inflation is nothing really.
What???? Its not even a K700 saving. Previously if you were getting K4000 the taxable sum was only the K700 at 25% you would have paid a paye of K175. Now if you get the same K4000 you don’t pay any paye so the saving is only K175 not K700. And you are happy with that K175? You must be very easy to please. Your wife must be very happy!