Multiple Personal Income Taxes and Financial Well-Being of Employees in Tertiary Institutions

Abstract

This study aimed to interrogate the relationship between multiple personal income taxes and public workers’ financial wellbeing. The paper therefore examined the relationships between pay as you earn, Bayelsa Health Insurance Scheme, Education Trust Funds and worker’s disposable income as proxies for objective financial wellbeing in (the public) tertiary institutions of Bayelsa State. The study adopted a quantitative design, and data were collected through the Salary Structure of teaching and non-teaching staff from Bayelsa State owned University of Africa and Niger Delta University in Nigeria. The data were analyzed by applying simple regression and correlation analysis. The findings revealed that there was a positive significant relationship between multiple personal income taxes and workers’ financial wellbeing in Bayelsa State tertiary institutions. However, at the entity level, the Bayelsa Health Insurance Scheme (BHIS) variable had a positive substantial impact on workers’ financial wellbeing; whilst, Pay as You Earn (PAYE) has a negative significant effect on workers’ financial wellbeing. Whereas Education Trust Funds (EDTF) variable had an inverse non-significant association with workers’ financial wellbeing in Bayelsa State. Therefore, we recommend a fair and equitable tax policy framework to sustain adequate pay for public servants and reduce employees’ turnover in the state.