The National Union of Miners and Allied […]

The National Union of Miners and Allied Workers (NUMAW) is calling on the government to raise the Pay As You Earn (PAYE) tax-free threshold from K5,500 to between K6, 500 and K7,000 in the upcoming 2027 national budget, citing the need for greater financial relief for workers amid rising living costs.

PAYE (Pay As You Earn) in Zambia is a system where employers deduct income tax directly from an employee’s salary or wages each pay period and remit it to the Zambia Revenue Authority – ZRA.NUMAW President Saul Simujika emphasized that the proposed adjustment would directly benefit mining sector employees, who have been struggling to cope with increasing household expenses.

“Raising the PAYE threshold to that level would ensure that more of the workers’ earnings remain untaxed, giving them additional disposable income to meet their families’ needs,” Simujika stated.

He noted that the current threshold of K5,500 has failed to keep pace with the cost of living, and that a higher limit would help ease the financial burden on workers, especially in the mining industry.

Simujika further explained that increasing the tax-free limit would not only support workers but also boost morale and productivity across the sector.

The union president urged the government to prioritize measures that uplift ordinary Zambians in the 2026 budget, suggesting that a PAYE threshold increase would be a concrete step towards improving livelihoods.

Simujika warned that maintaining or reducing the current threshold would leave workers vulnerable to ongoing financial pressures, while a reduction would be detrimental to household welfare.

He called on policymakers to consider the realities faced by miners and other workers, and to act decisively to provide meaningful relief in the forthcoming budget.

“Currently, the first K5,500 of monthly income is not taxed on workers. We are proposing this be increased to K7,000, so that an additional K1,500 remains tax-free. This change would provide significant relief to workers and their families,” Simujika explained.

He added that such an adjustment would help working households better cope with the rising cost of living, aligning with the government’s Grow Zambia agenda to support grassroots communities.

Simujika further stated that a higher PAYE threshold would result in a net pay increase for workers, reducing their need to borrow for basic necessities and boosting morale and productivity in the mining sector.

“This would have a ripple effect, potentially increasing production towards our target of 3 million metric tons,” he said.

In addition to advocating for a higher PAYE threshold, Simujika urged the government to adopt investment-friendly policies within the mining sector.

He also stressed the importance of a fair and predictable tax regime to attract new investors and promote reinvestment, which is crucial for industry growth.

He also highlighted the need for more support for small-scale miners, particularly in accessing resources such as acid from smelters.

Simujika suggested that before allowing exports, the government should ensure domestic demand is fully met, enabling small-scale miners to operate more efficiently.

Simujika warned that maintaining the current tax threshold would do little to improve workers’ financial well-being, while any reduction would worsen their economic challenges.

“We do not want to demand unrealistic figures, but a threshold of between K6,500 and K7,000 would be fair. If the government can do even better, it would be more beneficial.

However, maintaining or lowering the threshold would leave workers struggling with the same issues for another year,” he cautioned.

The NUMAW president concluded by urging policymakers to prioritize practical solutions that directly impact workers’ livelihoods and foster sustainable growth in the mining industry.

By Tyndale Muchiya

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