TSC Responds to Teachers’ Concerns Over Higher PAYE Deductions in June

The Teachers Service Commission (TSC) has acknowledged a payroll system error that triggered adjustments in Pay As You Earn (PAYE) deductions in the June 2026 payroll, following concerns raised by teachers across the country.

In a statement dated June 24, 2026, the Commission explained that the changes emerged during the implementation of new tax exemptions under the Tax Laws (Amendment) Act, 2024.

The law excludes contributions to the Affordable Housing Levy (AHL) and the Social Health Insurance Fund (SHIF) from income tax.

“The Teachers Service Commission (TSC) has received concerns, regarding adjustments to Pay As You Earn (PAYE) deductions reflected in the June 2026 payroll,” the statement stated.

As the Commission aligned its payroll system with the new law, it encountered an unexpected issue.

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TSC System Reconfiguration Triggers Payroll Anomaly

During the reconfiguration, the system mistakenly reapplied tax relief on National Social Security Fund (NSSF) contributions, even though they already qualified as tax-exempt. As a result, the system granted duplicate tax relief to employees.

TSC identified the anomaly through routine payroll reviews and quickly corrected it in the June payroll for both teachers and Secretariat staff to ensure compliance with tax regulations.

“During the system reconfiguration process, an unintended anomaly occurred whereby, in addition to AHL and SHIF contributions, National Social Security Fund (NSSF) contributions which had already been configured as tax-exempt in the payroll system were inadvertently re-captured for tax relief purposes,” the statement added.

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Corrections Lead to Adjusted PAYE Deductions

Following the correction, TSC recalculated PAYE deductions to reflect accurate tax obligations going forward.

Consequently, teachers noticed changes in their June payslips.

“The Commission wishes to clarify that the PAYE adjustment reflected in the June 2026 payroll arose from the correction of the payroll system configuration and was necessary to ensure accurate computation of Pay As You Earn deductions going forward,” the statement further said.

Finally, TSC expressed regret over the inconvenience caused and assured employees that the adjustments will support accurate and compliant payroll processing moving forward.

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A statement issued by TSC on June 24, 2026 explains the payroll error behind June PAYE adjustments for teachers. PHOTO/ TSC