Total calculations
KESEmployee Costs
Employer Costs
- NITA
- 50.00
How it works
How PAYE is calculated in Kenya
- 1
Start with gross pay
Your basic salary plus taxable allowances for the month. - 2
Subtract allowable deductions
Employee NSSF, SHIF (2.75%) and the Affordable Housing Levy (1.5%) reduce your taxable pay. - 3
Apply the KRA tax bands
Taxable pay is taxed in bands from 10% to 35%, then KES 2,400 personal relief is deducted.
| Monthly taxable pay | Rate |
|---|---|
| First KES 24,000 | 10% |
| Next KES 8,333 (24,001 – 32,333) | 25% |
| Next KES 467,667 (32,334 – 500,000) | 30% |
| Next KES 300,000 (500,001 – 800,000) | 32.5% |
| Above KES 800,000 | 35% |
Personal relief of KES 2,400 per month is deducted from the tax calculated.
FAQ
PAYE, SHIF and Housing Levy questions
What is PAYE in Kenya?
Pay As You Earn (PAYE) is the income tax employers deduct from employees' salaries every month and remit to the Kenya Revenue Authority (KRA). It's calculated on taxable pay using graduated tax bands, less personal relief.
How much is SHIF?
The Social Health Insurance Fund (SHIF), which replaced NHIF, is 2.75% of gross salary and is paid to the Social Health Authority. It is an allowable deduction when calculating taxable pay.
How is the Affordable Housing Levy calculated?
Employees contribute 1.5% of gross salary and employers match it with another 1.5%. The employee's share is deducted before PAYE is calculated.
How do NSSF Tier I and Tier II work?
Under the NSSF Act 2013, employees contribute 6% of pensionable pay, matched by the employer. Tier I covers earnings up to the lower earnings limit and Tier II covers earnings between the lower and upper limits, which are being phased up over time.
What does the employer pay on top of salary?
Employers match the employee's NSSF contribution, match the 1.5% Affordable Housing Levy and pay the NITA training levy of KES 50 per employee each month.
What is personal relief?
Personal relief is a fixed KES 2,400 per month (KES 28,800 per year) that every resident employee gets off their tax before PAYE is remitted.
Is this calculator accurate for my payslip?
It applies the current statutory rates to a monthly gross salary and gives a reliable estimate. Your actual payslip may differ if you have other reliefs, benefits, pension contributions or deductions. OnTap Payroll handles all of these automatically.
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