Paye Calculator kenya 2024

Paye Calculator kenya 2024

PAYE Calculator

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Understanding PAYE and Other Deductions


What is PAYE?


PAYE (Pay As You Earn) is a method of collecting income tax from employees on their earnings. The employer deducts a certain amount of tax from the employee's salary or wages and pays it directly to the tax authorities on behalf of the employee. This system ensures that taxes are collected regularly and in a timely manner.


How is PAYE Calculated?


PAYE is calculated based on tax bands. Here’s how the bands work:


  • Up to Ksh 24,000: 10%
  • Ksh 24,001 to Ksh 32,333: 25%
  • Ksh 32,334 to Ksh 500,000: 30%
  • Ksh 500,001 to Ksh 800,000: 32.5%
  • Above Ksh 800,000: 35%

Personal Relief is Ksh 2,400 per month, which is deducted from the PAYE tax to reduce the overall tax burden.


NHIF Contributions


The National Hospital Insurance Fund (NHIF) contributions are based on your gross salary. The contributions are used to provide health insurance coverage.


NSSF Contributions


The National Social Security Fund (NSSF) contributions are divided into two tiers:


  • Tier I: Up to Ksh 7,000 (6% by employer and 6% by employee)
  • Tier II: Ksh 7,001 - Ksh 36,000 (6% by employer and 6% by employee)

Housing Levy


The Housing Levy is a deduction of 1.5% of the monthly gross salary contributed by both the employer and employee. This levy is used to fund housing development projects.


How to Use the PAYE Calculator


To use the PAYE calculator, simply enter your gross salary in the input field and click the "Calculate" button. The calculator will automatically compute the PAYE tax, NHIF contributions, NSSF contributions, and Housing Levy based on the latest 2024 rates. The results will provide a detailed breakdown of each deduction.


NHIF, NSSF, and Housing Levy Tables

NHIF Contributions

Gross Salary (Ksh) NHIF Contribution (Ksh)
Up to 5,999150
6,000 - 7,999300
8,000 - 11,999400
12,000 - 14,999500
15,000 - 19,999600
20,000 - 24,999750
25,000 - 29,999850
30,000 - 34,999900
35,000 - 39,999950
40,000 - 44,9991,000
45,000 - 49,9991,100
50,000 - 59,9991,200
60,000 - 69,9991,300
70,000 - 79,9991,400
80,000 - 89,9991,500
90,000 - 99,9991,600
100,000 and above1,700

NSSF Contributions

Gross Salary (Ksh) Employer Contribution (6%) Employee Contribution (6%)
Up to 7,000420420
7,001 - 36,000max 1,740max 1,740

Housing Levy

Gross Salary (Ksh) Housing Levy (1.5%)
All amounts1.5% of gross salary
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