1. What is Net Salary?

Net salary is the amount an employee takes home after all deductions (taxes, insurance, pension, etc.) have been subtracted from the gross salary. In Kenya, this includes PAYE, NHIF, NSSF, and other statutory 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 tax deductions
• Deductions — NHIF, NSSF, pension contributions, etc.

Explanation: The calculation subtracts all mandatory and voluntary deductions from the gross salary to determine take-home pay.

3. Importance of Net Salary Calculation

Details: Understanding net salary helps employees budget effectively and employers ensure proper payroll processing according to Kenyan labor laws and tax regulations.

4. Using the Calculator

Tips: Enter gross salary in KES, followed by total taxes and other deductions. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are the main Kenyan tax deductions?
A: The main deductions are PAYE (income tax), NHIF (health insurance), and NSSF (pension). Rates vary by income level.

Q2: How often should I calculate my net salary?
A: It's good practice to calculate whenever your gross salary changes or when tax rates are adjusted (typically annually).

Q3: Are bonuses included in gross salary?
A: Yes, all earnings before deductions count as gross salary, including bonuses, allowances, and overtime pay.

Q4: What's the difference between statutory and voluntary deductions?
A: Statutory deductions (PAYE, NHIF, NSSF) are mandatory, while voluntary deductions (loans, savings) are optional.

Q5: Where can I find official Kenyan tax rates?
A: Check the Kenya Revenue Authority (KRA) website for current PAYE rates and deduction tables.