PAYE cuts raising workers’ take-home pay – Oyedele

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, has said Nigerian workers are beginning to earn more in take-home pay following reductions in Pay As You Earn (PAYE) deductions under the new tax laws.

Oyedele disclosed this in a post on his official X handle, citing feedback from employees who received their January 2026 salaries. According to him, early responses suggest that the revised tax framework is already providing noticeable relief to salary earners, particularly those whose income taxes are deducted at source.

He explained that the drop in PAYE deductions reflects the early impact of the Federal Government’s ongoing tax reforms, which are aimed at easing the financial burden on workers, boosting disposable income and supporting overall economic growth.

Oyedele added that beyond improving workers’ welfare, the reforms are also intended to simplify tax administration and enhance compliance across the country.

He noted that the measures were carefully structured to deliver targeted relief to employees in the formal sector, where PAYE remains the dominant method of personal income tax collection.