Finance and National Planning Minister Situmbeko Musokotwane announced that the 2025 national budget will not alter the pay-as-you-earn (PAYE) exempt threshold. The decision comes as the government reallocates funds to enhance social protection programs and address drought-related challenges.
Under the 2025 budget, the PAYE exempt threshold remains fixed at K5,100 for zero tax. Income between K5,100 and K7,100 is taxed at 20 percent, while earnings from K7,100 to K9,200 are taxed at 30 percent, and those above K9,200 at 37 percent.
During a symposium following the budget release, Dr. Musokotwane emphasized that the government is facing financial constraints and must prioritize funding. He stated, “We have historically provided tax relief to formal workers, but since they represent a small portion of the workforce, we have redirected assistance toward informal workers.”
