Why Teachers Will Face More Deductions Starting in January 2023.Employed Teachers , government employees and police officers are the recent groups to experience more deductions from their payslips in 2023.
This is in response to government’s introduction of Provident fund deductions from paystubs by TSC.
This deductions started two years ago with 5% cut going to provident fund.
This defined contribution pension plan uses contributions from both the employer and the employee to fund the plan for the benefit of the employee.
Provident fund was introduced to ease the burden of pension the government incurs when individuals retire from active service.
Also it will guarantee retirees their pension once they retire.Previously they had suffered going home without retirement benefits.
Why Teachers Will Face More Deductions Starting in January 2023.
According to public Service Superannuation Scheme (PSSS) Act pass in 2012 but came into effect in 2021.
All public servants are supposed to be subjected to 7.5ptc pay cut of their basic salary to this Pension scheme.
After launching the scheme,public servants aged 45 years old and below were automatically subjected to the scheme.
Those above 45 years old were left to join at their wish or continue with free pension.
The Pension scheme will be implemented as Follows:-
First-year (2021) -Teachers to contribute 2% of their basic salary
Second year(2022)-Teachers to contribute 5% of their basic salary
In 2023 the full 7.5% will be effected- the third phase.
Teachers’ and other public servants’ net salary will decrease as a result of the 7.5% increase’s adoption in 2023.
So, starting this year, life for teachers and civil officials will be more difficult, especially given the high rate of inflation.
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