Zambia Increases PAYE threshold from K4800 to K5100

Zambia Increases PAYE threshold from K4800 to K5100 to Alleviate Cost of Living and Boost Take-Home Pay



In a move aimed at relieving the financial burden on its citizens and bolstering the administration of Pay-As-You-Earn (PAYE) taxes, the Zambian government has announced a significant increase in the PAYE threshold. Effective immediately, the threshold has been raised from K4800 to K5100, representing a K300 increment. This adjustment holds promising implications for the finances of Zambian workers, as it means that anything from K5100 downward will no longer be subject to taxation. In this article, we will delve into the implications of this policy change, its impact on various sectors, and the government’s efforts to streamline PAYE administration.

Alleviating the Cost of Living:

The primary motivation behind this adjustment is to mitigate the rising cost of living faced by the people of Zambia. By increasing the PAYE threshold, the government is offering immediate financial relief to citizens across the nation. This change ensures that hard-earned income below K5100 remains untouched by taxation, ultimately resulting in an increase in take-home pay for many.

Strengthening PAYE Administration:

In conjunction with raising the threshold, the government is taking steps to enhance the administration of PAYE. One key initiative is the enforcement of legal provisions that require employers to submit employee tax identification numbers (TINs) in their monthly returns. This measure aims to improve transparency and accountability in the taxation system.

Mixed Reactions:

The adjustment to the PAYE threshold has evoked mixed reactions from various segments of society. Some have welcomed it with open arms, asserting that very few individuals earn above the K5100 threshold in Zambia. Teachers, in particular, have expressed their happiness over the policy change, as it means more money in their pockets.

However, not everyone is celebrating. Those whose basic salaries exceed K5100 are the ones feeling the impact. While they may see a reduction in their take-home pay due to increased taxation on income above the threshold, it’s worth noting that the government’s intention is to provide relief to the majority of citizens who earn less.


The increase in the PAYE threshold from K4800 to K5100 is a significant step taken by the Zambian government to address the cost of living and improve the financial well-being of its citizens. This policy adjustment, combined with efforts to strengthen PAYE administration through TIN enforcement, represents a holistic approach to tax reform. While the change has generated varied reactions, it underscores the government’s commitment to providing financial relief to the majority of its citizens and ensuring a fair and transparent taxation system in Zambia.

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Peter N. Djangmah is a multifaceted individual with a passion for education, entrepreneurship, and blogging. With a firm belief in the power of digital education and science, I am affectionately known as the Private Minister of Information. Connect with me
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