Nigerian workers across public and private sectors say new tax laws take-home pay outcomes have been uneven, with early adjustments to PAYE deductions delivering modest gains for some employees and little or no relief for others.
Interviews conducted in major cities indicate that while a number of workers recorded slight increases in their January 2026 net earnings, the changes were often marginal and quickly eroded by rising food prices, transport costs and utility expenses.
Several employees said the adjustments fell below expectations created by official assurances that the reforms would significantly improve disposable income for salary earners.
New tax laws take-home pay varies across income levels
Tax experts explain that the reforms apply differently across income bands. Under the revised framework, income up to ₦800,000 annually is exempt from personal income tax, with progressive rates applied above that threshold.
As a result, lower-income earners may see small but positive changes, while middle- and higher-income employees experience limited gains depending on relief claims and payroll implementation by employers.
Some workers also reported confusion over their payslips, saying deductions appeared unchanged despite the reforms, raising concerns about compliance and understanding of the new rules.
Household pressures dilute expected relief
Economists warn that even where PAYE reductions are correctly applied, broader economic pressures are undermining the impact. Inflation, higher transport fares and increased service charges continue to strain household budgets, offsetting modest salary gains.
Labour analysts say sustained improvement in workers’ welfare will depend not only on tax adjustments but also on inflation control and consistent enforcement of payroll standards.
Calls for clarity and monitoring
Labour groups have called on authorities to intensify engagement with employers and workers to ensure transparent and uniform application of the tax laws. They argue that clearer communication and monitoring are needed to prevent disparities and restore confidence in the reform process.
As implementation continues, workers say they will closely watch future salary payments to determine whether the reforms deliver tangible improvements or remain largely symbolic.
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