1. What is Net Salary Calculation?

The net salary calculation determines the actual take-home pay after deducting taxes and other deductions from the gross salary. In Kenya, this includes PAYE, NHIF, NSSF, and other statutory or voluntary deductions.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Salary — Total earnings before any deductions
• Kenyan Taxes — PAYE and other statutory taxes
• Deductions — NHIF, NSSF, pension contributions, etc.

Explanation: The calculation shows the actual amount an employee receives after all mandatory and voluntary deductions.

3. Importance of Net Salary Calculation

Details: Understanding net salary helps employees budget effectively and employers ensure compliance with Kenyan labor laws and tax regulations.

4. Using the Calculator

Tips: Enter gross salary in KES, followed by total taxes and deductions. The calculator will compute the net take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: What are common Kenyan tax deductions?
A: PAYE (Pay As You Earn), NHIF (National Hospital Insurance Fund), and NSSF (National Social Security Fund) are mandatory deductions.

Q2: How is PAYE calculated in Kenya?
A: PAYE is calculated progressively based on income brackets set by KRA (Kenya Revenue Authority).

Q3: Are pension contributions deductible?
A: Yes, registered pension contributions up to KES 20,000/month or 30% of income (whichever is lower) are tax-deductible.

Q4: What's the difference between gross and net salary?
A: Gross is total earnings before deductions, while net is the actual amount received in bank after all deductions.

Q5: Are housing and transport allowances taxable?
A: Yes, most allowances are taxable unless specifically exempted by Kenyan tax laws.