Public servants pay cut was human error: Prime Minister Marape

The pay cut experienced by thousands of public servants in the first take home pay for 2024 could have been avoided.

Prime Minister James Marape admitted public servants working in line government agencies did not do their jobs.

The National Budget for 2024 which increased the salary tax-threshold to K20, 000 was made legal in November last year but “someone in {Departments of] Treasury, Finance and [National] Planning were not doing their jobs, simply put,” Prime Minister James Marape said.

“We made permanent not paying tax threshold to K20, 000, so the temporary configuration was not made permanent.

 “You could really say someone up there did not do their job. Budget was passed, it is law that does whoever earns under K20, 000 does not pay tax.”

The prime minister said an audit already undertaken by a private company on the Government Alesco payroll system found there was some fault.  

And there “is a huge consideration, we [government] are considering” to review the system.   

“The system carries biggest government expenditure every two weeks, integrity of the system we look at so the correct pay roll is run, part of the reforms that is ongoing, “Mr Marape said.

Finance Department released a statement on the pay cut experienced by thousands of government employees, stating that Alesco government payroll software was not updated to the new tax-free threshold of K20, 000 but was “systematically automated back to K17,500.”