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REGULATING SALARY LOANS TO STAFF

The Government policy permits deductions from the payroll including statutory deductions not to exceed 50% of gross basic pay.

It has however, been observed that some staffs:-

i) Contract multiple salary loans from various banks leading to deductions exceeding 50% and the names are automatically dropped-off the payroll.

ii) In addition to contracting salary loans from banks, some staffs contract more salary loan from Micro finance Financial Institutions, which grossly affect their net take home emolument and welfare.

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