1. What is Net Salary Calculation?

The ADP Net Salary Calculator helps determine your take-home pay in Kenya by subtracting mandatory deductions (Income Tax, NHIF, NSSF) from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Your total earnings before deductions
• Income Tax — Pay As You Earn (PAYE) tax amount
• NHIF — National Hospital Insurance Fund contribution
• NSSF — National Social Security Fund contribution

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps with personal budgeting, loan applications, and financial planning by showing your actual take-home pay after all mandatory deductions.

4. Using the Calculator

Tips: Enter your gross salary and all deduction amounts in Kenyan Shillings (KES). Ensure all values are accurate for correct net salary calculation.

5. Frequently Asked Questions (FAQ)

Q1: How is Income Tax calculated in Kenya?
A: Kenya uses progressive tax rates from 10% to 30% based on income brackets, with personal relief deductions.

Q2: What are current NHIF rates?
A: NHIF contributions range from KES 150 to KES 1,700 monthly based on salary brackets.

Q3: How much is NSSF contribution?
A: NSSF Tier I is 6% of pensionable earnings (max KES 1,080), while Tier II is 6% of additional earnings.

Q4: Are there other deductions not included here?
A: Yes, this calculator covers mandatory deductions. Your employer may deduct others like loan repayments or insurance.

Q5: How often should I calculate my net salary?
A: Recalculate whenever your gross salary changes or when tax/NHIF/NSSF rates are adjusted by the government.