Following the introduction of new personal income tax reforms, some employees have responded to recent changes in their take-home pay in a mixed and generally unimpressive manner. Many claim that the increases are insufficient to significantly ease economic pressures.
According to The PUNCH, the new tax reform laws introduce several adjustments to the PIT regime. Individuals earning the national minimum wage or less are now exempt from personal income tax, while employees with an annual gross income of up to N1.2m, equivalent to about N800,000 in taxable income, are also exempt. The reforms further provide for reduced Pay-As-You-Earn tax for those earning up to N20m annually and exempt gifts from taxation.
Despite these changes, several workers told The PUNCH on Monday that the impact on their salaries has been modest. A banker, Adetunji Morgan, said his salary rose by about N5,000 following the adjustment. “Yes, the salary increased. I think it increased by about N5,000 for me,” he said.
A Lagos State civil servant, Adedayo Lawal, said it was difficult to determine the exact effect of the PAYE reduction on his earnings without reviewing his payslip. He explained that a Yuletide allowance paid in December further complicated the assessment. “We were given a Yuletide allowance in December, but only 50 per cent of it was paid, with a promise that the second part would be paid this month,” he said, adding that he was not expecting a significant increase.
Similarly, Tolulope Ifeanyi, an employee in the financial services sector, described the increment as minimal. “Mine increased, oh, just a little, sha,” she said.
For a media practitioner, Joshua Austin, the increase was symbolic rather than impactful. “My salary increased, but it is not enough to buy me shawarma for one evening,” he said, noting that a wrap of his preferred shawarma costs N2,500. “As for an increase, yes, it increased, but what is the value of the increase?”
A verified X user, Gabriel Bolatito, also acknowledged the marginal change, stating that while the reduction in PAYE was small, it aligned with prior expectations and resulted in a slight net increase.
“I received my salary last week, and my take-home pay is slightly higher than before. It’s not a huge change, but it helps cover some of the rising costs of living,” said Uchechi Nwankamma, a contract staff at Access Bank in Lagos earning between N200,000 and N250,000 monthly.
From a cross-section of employees interviewed by The PUNCH across the public and private sectors, salary increments reportedly ranged from N6,000 and N5,000 to as low as N3,000, N1,443 and even N400.
Reacting to the feedback, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said the committee had received confirmations from workers who noticed reductions in their PAYE tax. In a post on his X (formerly Twitter) handle on Monday, Oyedele wrote, “We are pleased to note the feedback from workers who have received their salaries for January 2026 and confirmed a reduction in their PAYE tax, resulting in higher take-home pay under the new tax laws.”
He added that the committee, in collaboration with the Joint Revenue Board, would host an engagement session with HR directors, payroll managers, chief financial officers, tax managers and other senior executives responsible for employee compensation and payroll tax compliance. The session, scheduled for Wednesday, is aimed at ensuring proper understanding and implementation of the reforms, he said.
