Teachers’ January 2021 Basic Salary Scales After Pension Deductions

Teachers’ January 2021 Salary Scales After Pension Deductions

Starting January 2021, civil servants will suffer a pay cut for onward remittance in the newly created Public Service Super annuation Scheme. The move will be taken by the State to reducing the pension burden shouldered by the Exchequer.

Read also:

KUPPET Branch Threatens To Strike In January

Teachers’ Basic Salary Scales After Phase 2 of Pension Deductions

Teachers’  Basic Salary Scales After Final Phase of Pension Deductions

Quick Facts about the January Contributory Pension Scheme As WCPS Contribution Ends 

Why TSC May Renew Internship contracts With current interns

Top 10 subject Combinations With the Highest TSC Internship Employability Rates in 2020

Years of Graduation Likely to Win in the 2020 TSC internship interviews Per Subject Combination

Top 7 Cheapest and Best Personal Accident Insurance Covers For Interns

Just In: Why TSC Has Banned Current Interns From The Ongoing Internship Applications

Under the current pension scheme, civil servants, unlike workers in the private sector, do not contribute to their pension and their benefits are paid from taxes. Some highlights of the scheme include;

• This scheme will be rolled out from January 2021. The scheme will affect all civil servants including; teachers, police officers and prison officers.
• The scheme will affect employees who will be aged 45 years and below as at 1^st January 2021. Though the employees above 45 years who wish the scheme will be free to apply for inclusion in the new scheme or remain in the old one. The current Public Service Pension arrangement will be closed to all new employees.
• All those employed by the government will be required to contribute 7.5% of their basic pay towards the fund and the government to subside with a contribution of 15% towards the same.
• TSC has taken care to protect teachers against the negative effect this may have on the pay slips.
• The scheme will be implemented in a period of three years: In the first year, teachers will contribute 2% of their basic salary and the government will contribute 15%. During the first year of implementation, the male teachers will be cushioned by stopping WCPS deductions. In the second year, the teacher will contribute 5%, and the government 15%.Finally in the third year, the teacher will be deducted 7.5% but the government will give 15%. This will then be effected till the teacher retires.
• The contribution will be deducted from the salary before tax is calculated. This will reduce the tax level and improve the pay of an employee, alongside helping the employee to evade double taxation of pension contributions and payouts.

The 7.5 % pension contribution will be implemented in three phases, beginning January 2021, where 2 % of the basic salary will be deducted. The teachers’ basic pay after the deductions are tabulated below. In the same month, widows and children pension scheme( WCPS), which is usually contributed by male teachers, will cease to exist in teachers’ pay slips.