PHILIPSBURG:--- The Honorable Minister of Finance, Marinka Gumbs, has addressed recent claims regarding the taxation of Justice personnel, clarifying that an extraordinary tax is not applied to regular monthly salaries. Instead, an extraordinary tax applies solely to extraordinary income components such as vacation allowance, gratifications, bonuses, and other one-time payments.
The Minister’s clarification follows a recent article published by a Member of Parliament in which concerns were raised regarding the taxation of Justice personnel. While the concerns are understood, the information presented in the article was not entirely accurate and requires correction to avoid misunderstanding among employees and the wider public.
Minister Gumbs explained that the issue originated from a lump-sum payment made in 2024, which temporarily placed some Justice employees in the highest extraordinary tax bracket of 47.5 percent. In 2025, this exceptional situation was not followed by a manual adjustment of the extraordinary tax bracket. As a result, the 2025 extraordinary earnings for some individuals were taxed at the higher extraordinary rate. This does not mean that regular monthly salaries were taxed at 47.5 percent, as regular salaries are taxed in accordance with the applicable income tax brackets.
It is important to clarify that for Justice personnel, overtime, bereikbaarheid (on-call allowances), and diverse toelagen are not considered extraordinary income. These components are regarded as monthly recurring income and are therefore subject to regular wage taxation, just like the regular monthly salary.
Minister Gumbs further emphasized that this situation is case-specific as it does not apply to all individuals. Some individuals also received a lump-sum payment in 2025, which may have made applying the higher extraordinary tax bracket correct for them.
In addition, the Minister clarified that the percentage shown on a payslip relates only to the taxation of extra earnings. This percentage does not apply to regular monthly salary and should not be interpreted as the tax rate on normal wages.
According to the Minister, the 2025 fiscal year has now been officially closed and cannot be administratively reopened. Employees who file their 2025 income tax returns will receive any applicable refunds through the regular assessment process, provided there are no outstanding tax obligations.
To prevent a recurrence for those who received a lump sum in 2025, the Minister confirmed that the matter has been addressed with the Wages and Salaries Department. Specific emphasis has been placed on ensuring that extraordinary tax brackets are manually adjusted where necessary, going forward in 2026. The issue has also been discussed with the relevant labor unions as part of ongoing engagement, and actual payslips were requested and reviewed. The Minister thanks the union for its constructive cooperation throughout this process. In the months leading up to the payment of vacation allowance, the Wages and Salaries Department will ensure that the required manual adjustments are made. While the payroll system generally adjusts brackets automatically, the uncommon and irregular nature of lump-sum repayments to Justice personnel contributed to this situation.
“Our Justice personnel are frontline officers, the hardworking men and women in blue who serve and protect our community daily, often under difficult circumstances. Their concerns deserve to be heard, taken seriously, and addressed within the boundaries of the law,” Minister Gumbs stated.
The Minister also addressed claims suggesting that regular monthly salaries were unlawfully taxed at the highest rate, describing such assertions as inaccurate. She stressed the importance of accuracy and responsibility in public discourse on fiscal matters, noting that payroll calculations are complex for some. Publicly sharing unverified information without reviewing even a single payslip can lead to misinformation and unrealistic expectations among Justice personnel.
In closing, Minister Gumbs reaffirmed her commitment to accuracy, fairness, and transparency in public finance, and to the continuous improvement of administrative processes to ensure they function correctly for all civil servants.
The Minister also reminds the public and all civil servants that every last Friday of the month is ‘Finance Friday’ during which walk-in consultations will be held from 9:00 a.m. to 12:00 p.m. Individuals with questions or uncertainties are encouraged to attend, no appointment is required. Additionally, during Financial Literacy Month, two sessions on understanding payslips was conducted by the Minister of Finance. She strongly encourages participation in such sessions, emphasizing that understanding one’s payslip is essential.
