The Cost of Living Allowance (COLA) has been paid, but public sector workers are crying since the 15% COLA was taxed by the government. Public sector workers were taxed 17.5% on the COLA recieved.
It was all good news when the 15% Cost of Living Allowance (COLA) for July and October hit the bank accounts of public sector workers however, the tax slapped on the 15% COLA has diluted the excitement that greeted the COLA received for two months.
Public sector workers cry as 15% COLA is taxed – Details
The tax component deducted by the government did not only reduce the take-home pay as far as the allowance is concerned but also, the real value of the allowance in the face of the constant rising prices of goods and services has further reduced. A cross-section of public sector workers reacting to the payment of the COLA have called on the government not to tax the COLA if it really cares about the ordinary worker.
Before the payment of the COLA, public sector workers expected the COLA to be paid without any tax deductions. Today, inflation stands at 31.7 percent for July.
Since the agreement between the government and labour unions was reached in mid-July, prices have not been stable as they keep moving upward.
“Pursuant to the approval given by the Ministry of Finance on 1st August 2022, following the Agreement signed between Government and Organized Labour on 14th July 2022, the Controller and Accountant-General have paid the Cost of Living Allowance (COLA) to workers in Public Service Institutions.
“The COLA which represents fifteen percent (15%) of the 2022 basic salary was paid for the months of July and August. The total amount paid for COLA for the two months is Four Hundred and Eighty-Five Million Ghana Cedis (GH¢485,000,000.00),” the Government said in a press release while announcing the payment of the COLA.
The COLA agreement reached on 14th July will end after the government has paid December 2022 COLA.
Ghanaian public sector workers have reacted to taxed COLA. CHECK THE COMMENTS BELOW…
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