1. What is Net Salary Calculation?

Net salary is the amount an employee takes home after all statutory deductions (income tax, NHIF, NSSF) have been subtracted from the gross salary. In Kenya, these deductions are mandatory for all formal employees.

2. How Does the Calculator Work?

The calculator uses the Kenya salary formula:

Where:

• Income Tax — Progressive rates (10% up to KES 288,000, 25% up to KES 388,000, 30% above)
• NHIF — Fixed rates based on gross pay (KES 150 to KES 1,700 monthly)
• NSSF — 6% of pensionable earnings (up to KES 6,000 monthly)

3. Kenya Tax and Deductions Explained

Income Tax: Kenya uses a progressive tax system with three bands. The first KES 288,000 is taxed at 10%, the next KES 100,000 at 25%, and any amount above KES 388,000 at 30%.

NHIF: The National Hospital Insurance Fund provides health coverage. Contributions range from KES 150 to KES 1,700 per month based on salary brackets.

NSSF: The National Social Security Fund is a retirement benefits scheme. Employees contribute 6% of their pensionable earnings, capped at KES 6,000 per month (maximum contribution KES 360).

4. Using the Calculator

Tips: Enter your annual gross salary in Kenyan Shillings. The calculator will compute all statutory deductions and display your net take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: Are these rates current for 2023?
A: Yes, this calculator uses the latest Kenya Revenue Authority rates for 2023.

Q2: Is housing levy included?
A: No, the proposed 1.5% housing levy is not included in this calculation as it's not yet mandatory.

Q3: What about personal relief?
A: The standard monthly personal relief of KES 2,400 (KES 28,800 annually) is automatically factored into the tax calculation.

Q4: How often are NHIF rates updated?
A: NHIF rates typically change every few years. The current rates were implemented in 2023.

Q5: Can I use this for monthly calculations?
A: Yes, though the calculator shows annual figures. Divide by 12 for monthly equivalents.