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How Much is PAYE on Ksh70,000 in Kenya

The Government of Kenya’s offer of a Ksh70,000 stipend to Medical Interns is a significant step towards supporting healthcare professionals. However, understanding the intricacies of salary deductions, particularly PAYE, is crucial for these interns to effectively manage their finances. With this in mind, medical interns are eager to comprehend their salary deductions and determine their take-home pay to plan their finances responsibly.

Examining Your Payslip Breakdown

Here’s a breakdown of the potential components you might see on your payslip, based on your 70,000 KES monthly stipend:

DescriptionAmount (KES)Explanation
Basic Pay70,000.00This is your total salary before any deductions.
NSSF Contribution (National Social Security Fund)-2,160.00This mandatory contribution goes towards your retirement benefits.
Taxable Pay67,840.00This is your basic pay minus NSSF, used to calculate income tax.
Income Tax-15,135.36This is the estimated tax payable to KRA based on your taxable income. Note: The actual amount may vary slightly.
Tax ReliefsThese deductions reduce your tax liability:
– Insurance Relief (15% of NHIF)+210.00Reduces tax by 15% of your monthly NHIF contribution.
– AHL Relief (15% of Housing Levy)+157.50Reduces tax by 15% of your monthly Housing Levy contribution.
– Personal Relief+2,400.00Basic tax-free amount provided by the government.
Total Tax Reliefs+2,767.50Total tax reliefs deducted from your income tax.
PAYE (Tax Payable)-12,367.86This is your income tax minus tax reliefs (the remaining tax to be paid).
Net Pay55,472.14This is your take-home pay after tax deductions (NSSF, PAYE).
NHIF Contribution (National Hospital Insurance Fund)-1,400.00This mandatory contribution provides you with access to healthcare services.
Housing Levy (Affordable Housing Development Levy)-1,050.00This mandatory contribution goes towards affordable housing initiatives. Note: Housing Levy is deducted after tax.
Total Deductions-16,877.86Sum of all deductions from your gross pay (NSSF, NHIF, PAYE, Housing Levy)
Net Pay53,022.14This is your final take-home pay after all deductions.

Additional Tips
You can use the our tool link to PAYE calculator: https://calculator.co.ke/kra-paye-calculator/ to estimate your monthly PAYE deductions.
Consulting a registered tax advisor can clarify any specific questions you may have about your tax situation.
By understanding PAYE deductions and managing your finances effectively, you can focus on your medical career with peace of mind. Congratulations again on embarking on this rewarding journey!
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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