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UPDATE ON PAYMENT OF FEBRUARY AND MARCH 2020 SALARY BY IPPIS

UPDATE ON PAYMENT OF FEBRUARY AND MARCH 2020 SALARY BY IPPIS

It is no longer news that UI staff that enrolled on IPPIS during the last quarter of 2019 started receiving salaries on the platform from February 2020. However, on account of the spate of complaints by many members of staff the need to provide updates on the fallout of salary payments for February and March 2020 has become very urgent. An attempt is made here to address some of the salient issues.

It is important to state categorically that IPPIS has started implementation of the new minimum wage for senior staff. We shouldn't forget that the University of Ibadan has implemented the minimum wage for staff on CONTISS 1 to 5 from April 18 2019 to January 2020. Consequently, arrears of the new minimum wage for the period from 18 April 2019 to January 2020 still stands as outstanding credit only for senior non-teaching staff and all Academic staff.

Now for February 2020, the following are updates:

i. In addition to our gross salary, IPPIS added peculiarity allowance approved and payable to College of Education and Federal Polytechnics to University staff. This was paid at the rate of 5 percent and 7 percent on the gross salary to Non Teaching and Academic staff, respectively;

ii. Compulsory 2.5 percent on our gross salary was deducted for National Housing Fund (NHF);

iii. Appropriate 7.5 percent on gross salary was deducted as Employee's contribution under the contributory pension scheme;

iv. Union dues was deducted at 2 percent of gross salary;

v. PAYE tax was deducted based on tax law with increased tax liabilities for each staff compared to what obtained hitherto.

The implications of items ii to v for the February 2020 salary was reduction in the take home pay of individual members of staff.

Now in March 2020, the same scenario as in February ensued except for the removal of peculiarity allowance from universities staff salary. This accounted for the further reduction experienced in the March 2020 salary in comparison to what obtained the previous month.

We have stated severally that there is no double deduction of Employee's contribution under the contributory pension scheme in UI but rather inappropriate rate being used to calculate our Employee's Contribution. What IPPIS has done now should convince us that UI has not been involved in double deduction of pension before the advent of IPPIS.

It should be emphasized that contrary to opinions in some quarters, the University Bursary was not involved in the preparation and payment of February and March payroll. We only made our observations on February salary known to the IPPIS office in Abuja. Some of these observations are payment to staff that are deceased, payment of salary to staff on leave of absence without pay, and payment of salary to those that retired prior to February 2020.

In addition, we supplied our payroll for January 2020 and nominal roll for December 2019 and January 2020. We expected IPPIS office to note promotion in January 2020 from our January payroll.

However, from the March 2020 payroll which was received on Thursday 9th April 2020, we have observed that some of the observations we pointed out have not been effected.

We want to implore our staff to exercise patience with the IPPIS office to perfect the processes of preparation of our payroll in due course.

Thank you.

Bursar

10th April 2020