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Authorise CAGD not to subject Teachers’ Professional Allowances to tax – FWSC to Finance Ministry

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The Fair Wages and Salaries Commission (FWSC) has called on the Ministry of Finance to as a matter of urgency, authorize the Controller and Accountant General’s Department (CAGD) to exclude the Teachers’ Professional Development Allowances from being taxed.

The FWSC in a letter dated November 20, 2020 and signed by its Chief Executive Dr Edward Kwapong to the Minister of Finance indicated, that it has received a letter from the Ghana Education Service (GES) on November 19, 2020, which was copied to the Minister of Finance among others on the subject matter .

The GES Notice

The FWSC said, the GES letter has drawn its attention to the fact that the Continuous Professional Development Allowance (CPD) which was agreed to be paid to both Professional and Non-Professional Teachers at a one-off payment at the rates of GH¢1,200.00 and GH¢800.00 per annum respectively has been subject to tax.

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The Negotiations

The FWSC indicated, that it may be recalled, that during negotiations with Teacher Unions, It was agreed that the CPD Allowance would not be subject to tax.

Authorization

The FWSC therefore CALLED ON THE mINISTRY OF fINANCE TO AUTHORISE THE CAGD not to subject the allowance to tax to forestall agitations from the Teacher Unions.

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Payment of CPD Allowance

The Professional Development Allowance of staff of the Ghana Education Service (GES) has been paid by the government.

The payment of the Allowance, which has been postponed from August till November 2020 has been finally paid but not without controversies.

The allowance has been taxed, which was against the agreement between the Unions and the Government of Ghana. This development has brought agitations among the teaching fraternity.


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