Atwoli urges government to tax only basic salary, not gross pay, as deductions hit payslips
He insisted that money earned through overtime, bonuses and allowances should not be taxed, saying these earnings come from extra effort and should not be touched by deductions.
COTU Secretary-General Francis Atwoli has urged the government to ease the tax burden on Kenyan workers by changing how deductions are calculated, saying only the basic salary should be taxed, not the full gross pay.
Speaking during Labour Day celebrations at Uhuru Gardens in Nairobi, Atwoli asked President William Ruto to take up the matter and act in favour of workers whose payslips have been affected by rising deductions.
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"All salary deductions and statutory deductions should be on basic pay and not on gross, where somebody might have toiled very hard on overtime and does not realise anything,” he said.
He insisted that money earned through overtime, bonuses and allowances should not be taxed, saying these earnings come from extra effort and should not be touched by deductions.
Atwoli said it was wrong for the government to treat workers' gross pay as the starting point for all deductions. He said many employees were being punished for working hard.
He added that President Ruto’s leadership was key in pushing for reforms to make deductions fair and just, especially now that workers are facing many new charges, including the Housing Levy and the Social Health Insurance Fund (SHIF).
"These taxes should not be on the gross salary; it should be on the basic, so that the gross pay is not interfered with. I know the President will look into that," Atwoli said.
He said many workers are left with very little after all the monthly deductions are made, which hurts their ability to improve their lives and support their families.
"All deductions, including statutory deductions, should be on basic pay because people toil very hard, but they do not get anything in the aftermath," he said.
Atwoli also raised concerns over the growing trend of outsourcing labour. He said this practice could hurt the government's efforts to raise enough money through taxes.
He asked the government to make sure all outsourced workers are treated like regular employees when it comes to statutory deductions, saying it would help boost revenue collection.
During his speech, Atwoli reflected on the policies of US President Donald Trump. He said Trump’s focus on making America more self-reliant in building and manufacturing should encourage Kenya to take a similar path.
"Donald Trump’s policies, which are focused on building and manufacturing capabilities of the US through self-reliance, call for all of us to rethink how we can be free and independent economically," he said.
He also criticised those who attack the government without showing love for their country.
Atwoli said patriotism was important and asked Kenyans to be responsible in how they talk about national matters.
The COTU boss warned about the dangers of unregulated digital platforms, saying misuse of social media could divide the country. He called for steps to manage the use of these platforms before things get out of hand.
“We must love this country. We have no other country. If we don’t regulate social media. In China, Dubai, the UK and US, it is regulated. Kenya cannot be free for all,” he said.
He said that digital spaces must not be left unmonitored, especially at a time when people use them to spread false information or cause unrest.
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