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Calculating PAYE for a Ksh35,000 Salary in Kenya

Congratulations Susan Njeri on your well-deserved promotion in your sales role in Nakuru! As you move into this exciting new chapter, understanding your payslip and deductions is important. Let’s break down what PAYE (Pay As You Earn) is and how it affects your monthly take-home pay using a 35,000 KES salary example.

What is PAYE?

PAYE is a system implemented by the Kenya Revenue Authority (KRA) to ensure a smooth and efficient tax collection process. Here’s how it works:

  • Your employer withholds income tax from your gross salary each month based on your taxable income and tax brackets.
  • This withheld amount is then remitted to the KRA on your behalf.
  • Throughout the year, these regular payments ensure you’re fulfilling your tax obligations and avoid a large tax bill at the end of the year.

  • Understanding Your Payslip Breakdown

Now, let’s delve into a breakdown of the potential components you might see on your payslip, based on your 35,000 KES salary example:

DescriptionAmount (KES)Explanation
Basic Pay35,000.00This is your total salary before any deductions.
NSSF Contribution2,100.00This is your monthly contribution to the National Social Security Fund (NSSF). It provides you with retirement benefits.
Taxable Pay32,900.00This is your basic pay minus the NSSF contribution. It’s the amount used to calculate your income tax.
Income Tax4,653.36This is the estimated amount of income tax payable to KRA based on your taxable income.
Tax ReliefsThese are deductions that reduce your tax liability. Common reliefs include:
– Insurance Relief (15% of NHIF)-142.50Reduces your tax by 15% of your monthly NHIF contribution.
– AHL Relief (15% of Housing Levy)-78.75Reduces your tax by 15% of your monthly Housing Levy contribution.
– Personal Relief-2,400.00Basic tax-free amount provided by the government.
Total Tax Reliefs-2,621.25Total tax reliefs deducted from your income tax.
PAYE (Tax Payable)2,032.11This is your income tax minus tax reliefs. In this example, after reliefs, there’s a remaining tax amount to be paid.
Net Pay30,867.89This is your take-home pay after all deductions except Housing Levy (NSSF, NHIF, and PAYE).
NHIF Contribution950.00This is your monthly contribution to the National Hospital Insurance Fund (NHIF). It provides you with access to healthcare services.
Housing Levy525.00This is your monthly contribution towards the Affordable Housing Development Levy. It helps fund government initiatives for affordable housing. Note: Housing Levy is not deducted from your net pay.

Total Deductions 5,575.00 This is the sum of all deductions from your gross pay (NSSF, NHIF, PAYE).

Important Notes

  • The figures above are for illustrative purposes only and may vary based on your individual circumstances. You can use our P.A.Y.E Calculator tool to estimate your monthly PAYE deductions.
Basic Salary:
Benefits: (Allowances)
Please Enter Amount
NSSF Contribution
Taxable Income
NHIF Contribution
Insurance Relief
Housing Levy
Housing Relief
Net Pay

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