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:
| Description | Amount (KES) | Explanation |
|---|---|---|
| Basic Pay | 70,000.00 | 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 | 67,840.00 | This is your basic pay minus NSSF, used to calculate income tax. |
| Income Tax | -15,135.36 | This is the estimated tax payable to KRA based on your taxable income. Note: The actual amount may vary slightly. |
| Tax Reliefs | These deductions reduce your tax liability: | |
| – Insurance Relief (15% of NHIF) | +210.00 | Reduces tax by 15% of your monthly NHIF contribution. |
| – AHL Relief (15% of Housing Levy) | +157.50 | 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 | +2,767.50 | Total tax reliefs deducted from your income tax. |
| PAYE (Tax Payable) | -12,367.86 | This is your income tax minus tax reliefs (the remaining tax to be paid). |
| Net Pay | 55,472.14 | This is your take-home pay after tax deductions (NSSF, PAYE). |
| NHIF Contribution (National Hospital Insurance Fund) | -1,400.00 | This mandatory contribution provides you with access to healthcare services. |
| Housing Levy (Affordable Housing Development Levy) | -1,050.00 | This mandatory contribution goes towards affordable housing initiatives. Note: Housing Levy is deducted after tax. |
| Total Deductions | -16,877.86 | Sum of all deductions from your gross pay (NSSF, NHIF, PAYE, Housing Levy) |
| Net Pay | 53,022.14 | This 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!