The Office of the Accountant General of the Federation (OAGF) has refuted claims on salary deduction claims by tertiary institutions unions, led by the Academic Staff Union of Universities (ASUU), calling such, a cheap propaganda aimed to denigrate Integrated Payroll and Personnel Information System, IPPIS.
The OAGF in a statement signed by Henshaw Ogubike,
Director, Information, Press and Public Relations, on monday, explained that IPPIS applied the correct rate in compliance with Section 34 of the 6th schedule on personal income tax (Amendment) Act of 2011 adding that prior to migration to IPPIS, the rate of tax being applied by tertiary institutions was not correct, leading to underpayment of PAYE Tax.
“It is important to note that all states governments of the federation made claims on the federal government to pay the differential arising from underpayment of tax by these institutions”.
“The federal government has paid several billions on behalf of these institutions because of their underpayment of PAYE Tax. The request by the tertiary institution unions to formalize tax evasion through IPPIS is not only untenable, but unpatriotic request to violate extant laws on tax”.
Addresing the National Housing Fund (NHF) deductions, he explained that the NHF which is a statutory saving contribution by all federal employees to enable them have access to short life loans to own their personal houses represent 2.5 percent of basic salary.
He said: “ASUU is bringing claims that those laws should not be applicable to them and thereby should be exempted or be made optional for them. The request for breach of Act of Parliament is not within the ambit of the IPPIS or the OAGF”.
“Another issue raised by the unions is the Employees’ Pension Contribution deductions of 7.5 percent, the ASUU claim that the Employee Contributory Pension should be based on basic salary and not on consolidated salary and it has increased their employee deductions thereby reducing their take home”.
“The Consolidated salary is what is applicable to determine employee’s contribution of all Federal employees’ as Salaries Income and Wages Commission (SIWC) have consolidated salary without the composition”.
“Deduction is in line with the Pension Contributory Act.
On payment of allowances, it should be stated that this is based on the salary structure as approved by Salaries, Incomes and Wages Commission (SIWC)”.
However, the OAGF has advised the tertiary institutions academic unions to approach the Salaries, Incomes and Wages Commission (SIWC) to formalize any agreement on salaries and allowances that they claim to have been approved for them.
On the payment of sabbatical and visiting lecturers, the OAGF said that entitlement is duly recognized by IPPIS, but it is dependent on furnishing the IPPIS with the particulars of such lecturers, including IPPIS number, primary institution, the start date of the sabbatical or the visiting and the end date.
The OAGF further stated that all staff on sabbatical are entitled to 100 percent of their salaries as sabbatical allowances, while visiting and adjunct lecturers will enjoy 50percent of their salaries as visiting allowance.
“The government will no longer incur unnecessary expenditure on pension, NHIS or such allowances that are not part of universities pensionable salaries”.
On the issue of Union Dues, he explained that 2 percent of their consolidated salary was deducted as union dues, this was done so that the government would not be accused of denying them the dues, as they claim that the federal government is trying to use IPPIS to incapacitate them”.
“The tertiary institutions were in charge of the payment of their salaries up to January 2020, they owe their staff explanations why they refused to pay their staff up to January 2020 because the IPPIS commenced the payment of salaries to tertiary institution in February 2020”.
The OAGF further stressed that cooperation and understanding of all the tertiary institutions is key to effect the necessary corrections as the office is aware that there are bound to be teething challenges arising from migration of tertiary institutions onto IPPIS platform.
“On the alleged payment to dead university staff, it means the Institutions deliberately forwarded to IPPIS the list containing dead ASUU members as being part of their personnel, to get more personnel fund”.
“When President directed that ASUU be paid, the OAGF sent a letter, through NUC Executive Secretary, requesting for the list of ASUU members through their VCs. We run BVN test on the list forwarded to us as we are aware that we cannot use the old nominal roll because of changes that might have likely taken place.
“It is the responsibility of the Institutions or Agencies to inform the IPPIS office about death, resignation or exit from service before due date. We sent payroll analysis to the tertiary institution Bursars for review of any omission or names to be excluded”.
