Justice workers’ payslip concerns lead to payroll tax adjustments

GREAT BAY--Concerns raised by Justice personnel about deductions on their payslips have led to payroll tax adjustments by the Ministry of Finance ahead of the June 2026 vacation payroll.

The Ministry of Finance has confirmed that the issue did not involve regular monthly salaries being taxed at 47.5 percent. Regular salaries continue to be taxed according to the normal wage tax tables and income tax brackets. The higher percentage applies only to extraordinary earnings, such as lump-sum settlements, vacation allowance, bonuses, gratifications and other one-time payments.

The matter was brought directly to the attention of Minister of Finance Marinka Gumbs during one of her monthly Finance Friday consultations, where several police officers expressed concern about the taxation reflected on their payslips. After hearing the concerns, Minister Gumbs requested an immediate review by the Government’s payroll software provider.

Working together with the Wages and Salaries Department, the payroll software provider reviewed the payroll system and the application of extraordinary tax rates. The review confirmed that the matter was tied specifically to the taxation of extraordinary income, not normal monthly wages.

Minister Gumbs explained that the issue originated from a lump-sum payment made in 2024, which caused some Justice personnel to be placed in a higher extraordinary tax bracket. In certain cases, that extraordinary tax classification remained in place for later extraordinary payments. While this affected the taxation of some one-time earnings, it did not affect the taxation of regular salaries.

The Ministry also clarified that overtime payments, bereikbaarheid, on-call allowances and other recurring allowances received by Justice personnel are considered regular income and are taxed under the normal wage tax system.

According to the Ministry, the matter is case-specific and does not affect all Justice personnel. In some cases, employees received additional lump-sum payments in 2025, making the application of a higher extraordinary tax rate appropriate under existing regulations.

Following the review, the Ministry worked with the payroll software provider and the Wages and Salaries Department to implement the necessary adjustments and safeguards. Special attention has been placed on ensuring that extraordinary tax brackets are manually reviewed and adjusted where needed in cases involving exceptional lump-sum payments. These measures were completed ahead of the June 2026 vacation payroll.

“When these concerns were brought to my attention by our police officers during one of my Finance Friday consultations, I immediately requested that the matter be investigated. I am pleased that through the combined efforts of our payroll software provider and the dedicated staff of the Wages and Salaries Department, we were able to identify the cause, implement the necessary adjustments, and ensure that this matter was addressed before the June vacation payroll,” Minister Gumbs stated.

The Minister expressed appreciation to the payroll software provider for its cooperation and commended the Wages and Salaries Department for its professionalism, expertise and dedication throughout the review and implementation process.

Minister Gumbs also thanked the relevant labor unions for their constructive engagement and for helping provide information that supported the review.

The Ministry noted that the 2025 fiscal year has already been administratively closed and cannot be reopened. However, any over-withholding will be reconciled through the normal income tax assessment process when affected individuals file their 2025 income tax returns, provided there are no outstanding tax obligations.

“Our police officers and all Justice personnel serve our community with dedication and professionalism every day. Their concerns deserve to be heard, and when concerns are brought forward, we have a responsibility to investigate and act. I encourage all civil servants to continue utilizing Finance Friday as a direct avenue to engage with the Minister of Finance,” Minister Gumbs said.

Finance Friday is held on the last Friday of every month from 9:00 a.m. to 12:00 p.m. Members of the public with questions about taxes, payslips or other financial matters are encouraged to attend. No appointment is required.

Minister Gumbs reaffirmed her commitment to transparency, fairness and the continued improvement of administrative processes to ensure that government employees are treated fairly and compensated accurately.

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