Finance Ministry Reverses Decision on Payroll Deductions

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Finance Ministry Reverses Decision on Payroll Deductions
Finance Ministry Reverses Decision on Payroll Deductions

Africa-Press – Namibia. The Ministry of Finance has announced that it will not discontinue all discretionary payroll deductions for government employees, with the Payroll Deduction Management System (PDMS) scheduled, which was slated to shut down on 30 November.

“Further to our letter dated 25 August 2025 and the stakeholder engagements which occurred on 16 September 2025, the Ministry of Finance (the MOF) hereby gives notice that, subject to further consultations with the stakeholders, the period of stakeholder engagement regarding the proposed reforms to the Payment Deduction Management System (PDMS), is herewith extended to 28 February 2026,” Ministry of Finance Executive Director, Michael Humavindu said.

He added that in the meantime, deduction code holders may continue making use of the PDMS, subject thereto that deductions must comply with the requirements imposed by law, including the Labour Act 2007, the State Finance Act, 1991 and ensuing Treasury Instructions and the Microlending Act, 2018.

“The requirement imposed by s 12 of the Labour Act, 2007, read together with Microlending Standard Number Four (ML.S.4), issued under s 35(1) of the Microlending Act, 2018, must be strictly enforced. Until 30 November 2025, the payments of deductions for those deduction code holders who conduct their business through Avril Payroll Deduction Management Company (Pty) Ltd (Avril) shall be made through Avril, but upon expiry of the agreement between the MOF and Avril on 30 November 2025, the MOF shall conduct all aspects of the PDMS in-house. All stakeholders are encouraged to make use of this opportunity to raise their concerns regarding the proposed discontinuation of the deduction codes and of all discretionary deductions from the MOF payroll,” Humavindu said.

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