The new OYSHIA deduction has become a major point of discussion among Oyo State civil servants following the release of a revised contribution schedule expected to take effect from February 2026. Unlike the old flat-rate system, the new structure introduces salary-grade-based deductions, leading to significant increases across Grade Levels (GL) and Steps (ST).

This article explains how much OYSHIA now deducts monthly, why the increase is happening, and how the scheme evolved to this point.

Brief History of OYSHIA

The Oyo State Health Insurance Agency (OYSHIA) was established to provide affordable and sustainable healthcare access for residents of Oyo State, especially public servants and vulnerable groups. This was initiated by the Abiola Ajimobi administration. Initially, civil servants contributed a flat monthly deduction:

• ₦1,250 for senior staff
• ₦666.70 for junior staff

This flat-rate system ran for years but according to the government representatives, became increasingly unsustainable due to rising healthcare costs, inflation, and expanded benefit expectations.

Why the New OYSHIA Deduction Was Introduced

The old OYSHIA contribution model could no longer adequately fund:

• Improved hospital services
• Expanded drug coverage
• Specialist care
• Dependants’ enrolment

As a result, OYSHIA introduced a graded contribution structure, aligning deductions with salary levels, similar to modern social health insurance systems.

How Much OYSHIA Now Deducts Monthly (New Scale)

Based on the attached official table, the new OYSHIA deduction varies by Grade Level and Step, replacing the flat ₦1,250 / ₦666.70 model.

Selected Examples from the New OYSHIA Schedule

Key Takeaways from the New OYSHIA Deduction

• Deductions now range from about ₦4,488 to over ₦11,200 monthly
• Senior officers experience the largest increases
• Junior staff also see significant jumps compared to the old ₦666.70 rate
• The difference column shows increases of ₦3,800 – ₦9,900+ monthly, depending on grade

This confirms that the new OYSHIA deduction is no longer symbolic but a substantial health insurance premium. While the Oyo State Government has been describing this as a huge positive policy shift, workers have been crying foul over the planned hike in the compulsory health insurance scheme.

When Will the New OYSHIA Deduction Start?

According to internal circulars and payroll projections, the new deduction structure is expected to commence in February 2026, subject to final government implementation directives.

Civil servants are advised to:

• Monitor payslips from January–February 2026
• Seek clarification from their accounts or payroll units
• Confirm deductions based on exact GL and Step

What Civil Servants Get in Return

The increased deduction is said to be tied to:

• Broader healthcare coverage
• Better hospital access
• Improved drug availability
• Potential inclusion of chronic and specialist treatments
• More sustainable funding of the state’s health insurance system

OYSHIA has indicated that the goal is quality healthcare without catastrophic medical spending, even though the immediate cost is heavy and civil servants have been very skeptical.

In conclusion

The new OYSHIA deduction marks a major shift in Oyo State’s health insurance policy. While the jump from a flat ₦1,250 or ₦666.70 to several thousands of naira monthly is significant, it reflects a move toward a salary-based, actuarial health insurance system.

As February 2026 approaches, civil servants should prepare financially and stay informed through official channels to understand how the new deduction affects them personally.

It is also hoped that the new deductions come to reflect what it claim it will correct. It should be a departure from the former laclustre scheme where patients have had to put up with a list of inefficiencies.