Workers April salaries are likely to delay as employers are unsure whether to comply with president Uhuru proposed changes on the pay-as-you-earn regulation, which was in parliament for discussion this week.
During the debate, members of parliament introduced new clauses while rejecting others, increasing the possibility of delays should the president choose to disagree with the changes made by the MPs.
The MPs approved the president’s wish of reducing income tax but rejected some raising-revenue proposals like the tax on food and agricultural inputs.
Due to the uncertainty in the president’s next move on the Bill and the amount of time required to process it for signing, employers are now choosing to delay processing April’s salaries. Employers are staring with the hope of benefiting from the reduced tax and also look forward to passing the relief in the reduced PAYE to their employees.
Mr. Hira had earlier recommended that employers should pay their workers using the current rates then recompute them if the president assents to the Bill before the end of April as a way of avoiding delay workers’ salaries.
The president is now expected to either accept the changes made or reject some clauses referring them back to the parliament for amendments with his recommendations.