This guide highlights the updated PAYE rates, SHIF deduction rates, NSSF rates, and applicable personal relief in Kenya for 2025.
PAYE Tax Brackets (2025 Rates)
| Monthly Pay Bands (Ksh) | Annual Pay Bands (Ksh) | Tax Rate (%) |
|---|---|---|
| On the first 24,000 | On the first 288,000 | 10% |
| On the next 8,333 | On the next 100,000 | 25% |
| On the next 467,667 | On the next 5,612,000 | 30% |
| On the next 300,000 | On the next 3,600,000 | 32.5% |
| On all income above 800,000 | On all income above 9,600,000 | 35% |
SHIF Contribution Rates (Effective October 2024)
- Contribution Rate: 2.75% of gross salary.
- Minimum Contribution: Ksh 300 per month.
- Maximum Contribution: No limit.
Employers are required to remit SHIF contributions by the 9th of the following month.
NSSF Contribution Rates
- Employee Contribution: Up to Ksh 1,080 monthly.
- Employer Contribution: Matches employee contribution.
- Total Monthly Contribution: Ksh 2,160.
Personal Relief
- Resident Personal Relief: Ksh 2,400 monthly (Ksh 28,800 annually).
Ensure compliance with these updated rates using the PAYE Calculator 2025 to calculate your tax obligations accurately.