ZCTU asks government to cut PAYE to 15, 20 and 25 percent in the 2027 budget

The Zambia Congress of Trade Unions (ZCTU) has asked the government to reduce Pay As You Earn (PAYE) in the 2027 National Budget, saying workers carry too much of the load. ZCTU president Blake Mulala proposed a rate of 25 percent for the highest tax band, 20 percent for the second-highest band and 15 percent for the lowest taxable band. Mr Mulala said the government "should not depend on workers to grow the country's revenue base", and that PAYE puts a heavy burden on workers. He was responding to the Zambia Institute for Policy Analysis and Research (ZIPAR), which earlier this week advised the government not to reduce PAYE in the 2027 budget, saying Zambia needs the revenue. ## How PAYE works PAYE is the income tax that employers deduct from salaries every month and pay to the Zambia Revenue Authority. It is charged in bands, so the part of a person's pay that falls in a higher band is taxed at a higher rate than the part in a lower band. Only people on a payroll pay it. ## Why it matters Teachers, nurses, civil servants, miners and other salaried workers see PAYE taken out of their pay before it reaches them, so a change in the rates shows up on the payslip within a month. Most Zambians earn their living from farming, trading or other informal work and do not pay PAYE, but they depend on what the tax helps to fund, such as clinics, schools and farmer support. ZIPAR's argument is that the government needs that money, and the ZCTU's is that workers should not be asked to provide more of it. The Finance Minister will have to choose between the two positions when he presents the budget. ## What happens next Finance and National Planning Minister Dr Situmbeko Musokotwane is due to present the 2027 National Budget to Parliament on 6 November, a week later than the 30 October date first announced. The PAYE rates will be known when he reads it. SOURCE: News Diggers, 29 October 2026, 08:40 (Africa/Lusaka). Original story: <https://diggers.news/local/2026/10/29/wor