PAYE (Pay As You Earn) is calculated on taxable income after deducting NSSF employee contribution, SHIF, and Housing Levy from gross salary. Kenya uses progressive tax bands: 10% on the first KES 24,000, 25% on KES 24,001–32,333, 30% on KES 32,334–500,000, 32.5% on KES 500,001–800,000, and 35% above KES 800,000. Personal relief of KES 2,400/month is then deducted from the tax amount. See our PAYE calculation guide for step-by-step examples.

NSSF uses a two-tier system. Tier I covers earnings up to KES 9,000 at 6% for both employee and employer (maximum KES 540 each). Tier II covers earnings from KES 9,001 to KES 108,000, also at 6% each (maximum KES 5,940 each). The maximum total employee contribution is KES 6,480 per month. Both tiers are deducted before calculating PAYE. Read our NSSF rates guide for full details.

SHIF (Social Health Insurance Fund) replaced NHIF and is calculated at 2.75% of gross salary with no cap. SHIF is a pre-tax deduction — it reduces your taxable income before PAYE tax bands are applied, just like NSSF and Housing Levy. Learn more in our SHIF rates guide.

The Affordable Housing Levy is 1.5% of gross salary, deducted from the employee. The employer also contributes a matching 1.5%. The employee portion is deducted from gross salary before calculating PAYE taxable income. See our Housing Levy guide for more details.

Net Salary = Gross Salary – NSSF Employee – SHIF – Housing Levy Employee – PAYE (after reliefs). First deduct NSSF, SHIF, and Housing Levy from gross to get taxable income, then apply PAYE tax bands, subtract personal relief (KES 2,400) and any insurance relief, then deduct all statutory amounts from gross salary to arrive at net pay.

Every resident employee in Kenya receives a personal relief of KES 2,400 per month (KES 28,800 per year). This is subtracted from your calculated PAYE tax, not from your taxable income. Persons with disability holding a valid KRA exemption certificate receive an additional relief of KES 2,400 per month.

Yes. The calculator shows both the employee deductions and the employer contributions (NSSF employer share and Housing Levy employer share), giving you the total cost to the company for each employee. This is useful for budgeting and understanding the full employment cost beyond gross salary.