ENGAGEMENT PIECE: After Receiving Your January Salary, What Impact Did the New Tax Reform Have on Your Pay?

The release of January salaries across Nigeria has sparked widespread conversations among workers following the implementation of the federal government’s new tax reform measures.

For many employees, the first payslip of the year came with noticeable changes, as adjustments to Pay-As-You-Earn (PAYE) deductions took effect. While the reforms were introduced to improve revenue generation and streamline the tax system, their immediate impact has been felt differently across income groups.

Some workers reported higher deductions, reducing their take-home pay at a time when inflation and rising living costs continue to stretch household budgets. Others, particularly in lower-income brackets, said the changes were minimal or had little effect on their net earnings.

“I was surprised to see the deduction jump this month,” said a Lagos-based private sector employee. “With food and transport costs already high, even a small reduction in salary makes a difference.”

Conversely, a few public sector workers noted that the impact was less severe than expected, attributing this to reliefs and exemptions built into the reform framework.

Tax experts say the January salary cycle often brings heightened scrutiny, as it is typically when new fiscal policies begin to reflect in payroll systems. They note that while short-term discomfort may occur, the reforms are aimed at creating a more transparent and equitable tax structure in the long run.

As debates continue online and in workplaces, many Nigerians are calling for clearer communication from employers and tax authorities on how the new deductions are calculated and what benefits, if any, workers should expect in return.

What was your experience?

Did your January salary increase, drop, or remain the same under the new tax reform? Share your thoughts as the conversation continues.