TSC explains increased PAYE deductions in June 2026 payroll

• TSC has clarified the reasons behind the increased PAYE deductions reflected in the June 2026 payroll, following concerns raised by teachers across the country.

• The commission said the adjustments resulted from the correction of a payroll system anomaly that had inadvertently granted teachers a duplicate tax relief on their NSSF contributions.

• It has assured employees that the payroll system has now been corrected and future deductions will be computed in accordance with the prevailing tax laws.

The Teachers Service Commission (TSC) has clarified the reasons behind the increased Pay As You Earn (PAYE) deductions reflected in the June 2026 payroll, following concerns raised by teachers across the country.

In a statement, the commission said the adjustments resulted from the correction of a payroll system anomaly that had inadvertently granted teachers a duplicate tax relief on their National Social Security Fund (NSSF) contributions.

According to TSC, the anomaly arose during the reconfiguration of the Integrated Personnel and Payroll Database (IPPD) system to align with changes introduced under Section 7 of the Tax Laws (Amendment) Act, 2024.

The amendments exempted employee contributions to the Affordable Housing Levy (AHL) Fund and the Social Health Insurance Fund (SHIF) from income tax, prompting the Commission to update its payroll system in compliance with the new legal requirements.

However, during the reconfiguration process, NSSF contributions-which were already configured as tax-exempt; were mistakenly captured again for tax relief purposes.

“This resulted in the application of a duplicate tax relief on NSSF contribution for all TSC employees,” the commission said.

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TSC noted that the anomaly was identified during routine payroll system reviews and that immediate corrective measures were implemented in the June 2026 payroll for both teachers and Secretariat staff.

As a result, PAYE deductions were adjusted to reflect the correct tax computation as stipulated under the law.

“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 commission explained.

The commission expressed regret over any inconvenience caused by the adjustment and thanked teachers for their understanding and cooperation.

The clarification comes after teachers nationwide raised concerns last week over unexplained increases in PAYE deductions appearing in their June salaries, prompting calls for an official explanation from the Commission.

TSC has assured employees that the payroll system has now been corrected and future deductions will be computed in accordance with the prevailing tax laws.

By Kithinji Njeru