Tackling Absenteeism Head-On: IRC Introduces Salary Deductions

Commissioner General of the Internal Revenue Commission (IRC), Mr. Sam Koim, announced today a significant step towards fostering a culture of accountability and productivity within IRC. Starting next fortnight, the IRC?will implement salary deductions for staff who demonstrate a pattern of absenteeism, late arrivals, or early departure from work without a valid excuse?or proper authorization.

In making the announcement, Mr Koim asserted, "Unfortunately, it has become a norm and acceptable amongst staff in the Papua New Guinea?Public Service, to walk in and out at their own time. Some come in late, some come in and spend 2-3 hours at work, and some hardly come to work - yet they receive their full pay from the Government. These are also often the same people to be the first to voice their opinions loudly and publicly when there is the slightest delay in payments or benefits received. In the private sector, this would cause immediate on-the-spot termination, often without any notice or warning. This abuse of our government machinery must stop, and it must stop at the IRC."

The Commissioner General stated that despite notable improvements in staff attendance and productivity over the past four years, there remains a minority displaying chronic absenteeism. “I am proud of the cultural change that is taking place at IRC, but there is more room to improve hence this measure.” He added.

In reminding the staff through his weekly message, Mr Koim said, "Every employee of IRC has signed a contract to clock in 73.5 hours each fortnight. Despite the Government being faithful in paying every public servant, including IRC staff, for the full 73.5 hours, staff have been absconding their responsibilities, receiving their full pay, yet not delivering against objectives on a continuing basis. Simply put, this amounts to stealing or receiving pay for work not delivered."

The government allocates over K5 billion each year for public service salaries. Consider the potential productivity surge if every public servant dedicated the time they're compensated for. With full commitment from all public servants, we could have already made substantial progress in overcoming our challenges.

The decision to implement salary deductions is driven by IRC’s?dedication to maintaining integrity, enhancing efficiency, and maximizing productivity in fulfilling it’s?core mandate of tax revenue collections. Given that IRC contributes approximately 80% of total government revenues, it's imperative that IRC?optimize its?performance. Without corporatizing the organization and implementing necessary measures, IRC will struggle to meet the ever-increasing?revenue demands of the government. This underscores the importance of having disciplined and fairly compensated staff to achieve optimal performance. Highlighting the importance, the Commissioner General emphatically said, “Some of these pruning are painful, but they are necessary to boost productivity.”

As part of the process of corporatizing the organization, significant improvements?have been made to the terms and conditions of employment at IRC. Commissioner General Koim has been instrumental in driving this balanced approach, remarking, “I have pushed to improve the terms and conditions of our staff, substantially uplifted IRC staff T&Cs while offering further incentives to staff, far and beyond the normal public service norms. A key example would be our revised ‘Home Ownership Scheme’ policy launched in January 2024 – by far not only the best in the public sector (in PNG and abroad) but also miles ahead of any PNG private sector institution housing policy. Whilst the intention was to mitigate the risks of our tax officers being compromised by taxpayers for favours, it was also aimed to improve our productivity and retain staff.”

Drawing from the Biblical passage "to whom much is given, much is expected," Mr. Koim cautioned against a sense of entitlement that seems to be endemic within the public service. He emphasized, "We do not provide free lunches. With thousands of equally qualified individuals seeking employment opportunities, we cannot assume indefinite entitlement to our positions. It's imperative that we continually demonstrate our worth and earn our keep."

The IRC employs various tools to monitor attendance and performance effectively. At headquarters, a biometric clock-in and clock-out system tracks staff attendance, while a network-connected software deployed across the country monitors employee activity, productivity, and time management. Data gathered from these systems will inform staff attendance evaluations and facilitate payroll adjustments as necessary.

These measures reflect the IRC's commitment to evolving into a Robust, Modern, and Efficient Tax Administration. Key among the seven pillars of reform guiding this transformation is the goal of becoming a data-driven organization, leveraging digital initiatives, and fostering agility to tackle present and future challenges.

Speaking on efforts to enhance personnel management and position the IRC as an attractive employer, the Commissioner General remarked, "We've undertaken a significant organizational overhaul, assigning staff to specific functional areas with individual Key Performance Indicators (KPIs) and clear job descriptions. Additionally, we've implemented an integrated Human Resources Information System (HRIS) linking performance and attendance to payroll, poised to streamline operations. The decision to adjust pay for absenteeism aligns with our strategic direction, underlining the importance of embracing this new work ethos."

Authorised for Release,

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Sam Koim, OBE

Commissioner General