Judy Wangari, recently hired as a nurse at a private hospital, is eager to grasp the intricacies of her salary deductions to determine her take-home pay. With a monthly salary of Ksh55,000, Judy understands the importance of comprehending her financial situation to effectively manage her expenses and plan for her future.
Understanding Ksh55,000 Payslip Breakdown
Here’s a breakdown of the potential components you might see on your payslip, based on your 55,000 KES salary:
| Description | Amount (KES) | Explanation |
|---|---|---|
| Basic Pay | 55,000.00 | This is your total salary before any deductions. |
| NSSF Contribution (National Social Security Fund) | -2,160.00 | This mandatory contribution goes towards your retirement benefits. |
| Taxable Pay | 52,840.00 | This is your basic pay minus NSSF, used to calculate income tax. |
| Income Tax | -10,635.36 | This is the estimated tax payable to KRA based on your taxable income. |
| Tax Reliefs | These deductions reduce your tax liability: | |
| – Insurance Relief (15% of NHIF) | +180.00 | Reduces tax by 15% of your monthly NHIF contribution. |
| – AHL Relief (15% of Housing Levy) | +123.75 | Reduces tax by 15% of your monthly Housing Levy contribution. |
| – Personal Relief | +2,400.00 | Basic tax-free amount provided by the government. |
| Total Tax Reliefs | +2,703.75 | Total tax reliefs deducted from your income tax. |
| PAYE (Tax Payable) | -7,931.61 | This is your income tax minus tax reliefs (the remaining tax to be paid). |
| Net Pay | 44,908.39 | This is your take-home pay after tax deductions (NSSF, PAYE). |
| NHIF Contribution (National Hospital Insurance Fund) | -1,200.00 | This mandatory contribution provides you with access to healthcare services. |
| Housing Levy (Affordable Housing Development Levy) | -825.00 | This mandatory contribution goes towards affordable housing initiatives. |
| Total Deductions | -11,959.61 | Sum of all deductions from your gross pay (NSSF, NHIF, PAYE, Housing Levy) |
| Net Pay | 42,883.39 | This is your final take-home pay after all deductions. |