The Ministry of Finance has successfully implemented payroll tax adjustments ahead of the June 2026 vacation payroll following concerns raised by Justice personnel regarding the taxation of certain extraordinary payments.
The matter was brought directly to the attention of the Honorable Minister of Finance,
Marinka Gumbs, during one of the Minister’s monthly Finance Friday consultations, where
several police officers expressed concerns about the taxation reflected on their payslips.
Taking these concerns seriously, Minister Gumbs immediately requested that the
Government’s payroll software provider conduct a thorough review of the matter to
determine whether adjustments were required.
Working closely with the Wages and Salaries (Loon & Salaris) Department, the payroll
software provider conducted a detailed assessment of the payroll system and the
application of extraordinary tax rates. The review confirmed that the issue related
specifically to the taxation of extraordinary income, including lump-sum settlements,
vacation allowance, bonuses, gratifications, and other one-time payments.
The review also provided an opportunity to clarify a misconception that had been circulating
publicly, including statements suggesting that regular monthly salaries were being taxed at
the highest rate of 47.5 percent. The Ministry wishes to emphasize that this is not the case.
Regular monthly salaries are taxed in accordance with the applicable wage tax tables and
income tax brackets. The higher percentage applies only to extraordinary earnings and not
to normal monthly wages.
Minister Gumbs explained that the issue originated from a lump-sum payment made in
2024, which resulted in some Justice personnel being placed in a higher extraordinary tax
bracket. In certain cases, the extraordinary tax classification remained in place for
subsequent extraordinary payments. While this affected the taxation of certain extraordinary
earnings, it did not affect the taxation of regular monthly salaries.
Furthermore, overtime payments, bereikbaarheid (on-call allowances), and other recurring
allowances received by Justice personnel are considered regular income and are therefore
taxed under the normal wage tax system.
The Ministry also notes that the matter is case-specific and does not affect all Justice
personnel. In some instances, employees received additional lump-sum payments in 2025,
making the application of the higher extraordinary tax rate appropriate under existing
regulations.
As a result of the review, the Ministry worked closely with both the payroll software provider
and the Wages and Salaries Department to implement the necessary adjustments and
safeguards. Particular emphasis has been placed on ensuring that extraordinary tax
brackets are manually reviewed and adjusted where necessary in cases involving
exceptional lump-sum payments. These measures have been completed ahead of the June
2026 vacation payroll.
Minister Gumbs expressed her appreciation to the payroll software provider for its
cooperation and commended the Wages and Salaries Department for its professionalism,
expertise, and dedication throughout the review and implementation process.
“When these concerns were brought to my attention by our police officers during one of my
Finance Friday consultations, I immediately requested that the matter be investigated. I am
pleased that through the combined efforts of our payroll software provider and the
dedicated staff of the Wages and Salaries Department, we were able to identify the cause,
implement the necessary adjustments, and ensure that this matter was addressed before
the June vacation payroll,” Minister Gumbs stated.
The Minister also thanked the relevant labor unions for their constructive engagement
throughout the process and for assisting in providing information that supported the review.
While the 2025 fiscal year has been administratively closed and cannot be reopened, any
over-withholding will be reconciled through the normal income tax assessment process
when affected individuals file their 2025 income tax returns, provided there are no
outstanding tax obligations.
“Our police officers and all Justice personnel serve our community with dedication and
professionalism every day. Their concerns deserve to be heard, and when concerns are
brought forward, we have a responsibility to investigate and act. I encourage all civil
servants to continue utilizing Finance Friday as a direct avenue to engage with the Minister
of Finance.”
The Minister further reminds the public that Finance Friday is held on the last Friday of
every month from 9:00 a.m. to 12:00 p.m. Individuals with questions regarding taxes,
payslips, or other financial matters are encouraged to attend. No appointment is required.
Minister Gumbs reaffirmed her commitment to transparency, fairness, and the continuous
improvement of administrative processes to ensure that government employees are treated
fairly and compensated accurately.