[Papua New Guinea] Payroll software ‘glitch’ provokes riots

In Papua New Guinea, a two-week state of emergency has been implemented after the failure of an attempt to reconfigure the nation’s payroll system for government employees led to riots that resulted in multiple deaths, The Register reports.

Pandemic-era tax reductions in the nation were recently extended into 2024, however, the payroll system used for government employees was not configured correctly. In the first pay run of 2024, it reverted to older and higher tax rates. 

Government workers were reportedly taxed at a higher rate leaving pay packets around $100 lighter than expected; halving the pay of many employees. The error was misinterpreted as a surprise tax hike and some workers - including members of the police service - went on strike in protest.

In the absence of law enforcement, riots and looting quickly spread across Port Moresby, the capital city.

Prime Minister James Marape reportedly described the payroll issue as a “technical glitch” and later declared a state of emergency that has seen troops stationed in the capital to restore order.

Sam Koin - Commissioner General of the Internal Revenue Commission - apologised “for the loss of lives and properties during these regrettable and avoidable incidents”.

Source: The Register

(Link and quote via original reporting)

In Papua New Guinea, a two-week state of emergency has been implemented after the failure of an attempt to reconfigure the nation’s payroll system for government employees led to riots that resulted in multiple deaths, The Register reports.

Pandemic-era tax reductions in the nation were recently extended into 2024, however, the payroll system used for government employees was not configured correctly. In the first pay run of 2024, it reverted to older and higher tax rates. 

Government workers were reportedly taxed at a higher rate leaving pay packets around $100 lighter than expected; halving the pay of many employees. The error was misinterpreted as a surprise tax hike and some workers - including members of the police service - went on strike in protest.

In the absence of law enforcement, riots and looting quickly spread across Port Moresby, the capital city.

Prime Minister James Marape reportedly described the payroll issue as a “technical glitch” and later declared a state of emergency that has seen troops stationed in the capital to restore order.

Sam Koin - Commissioner General of the Internal Revenue Commission - apologised “for the loss of lives and properties during these regrettable and avoidable incidents”.

Source: The Register

(Link and quote via original reporting)