1. What is Salary Calculation in Kenya?

The salary calculator estimates net pay in Kenya after deducting income tax (PAYE), NHIF, and NSSF contributions from gross salary. It helps employees understand their take-home pay and mandatory deductions.

2. How Does the Calculator Work?

The calculator uses the 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 brackets (KES 150-1700/month)
• NSSF — 6% of pensionable earnings up to maximum contribution

3. Importance of Salary Calculation

Details: Understanding salary deductions helps with financial planning and ensures compliance with Kenyan tax laws and social security requirements.

4. Using the Calculator

Tips: Enter your annual gross salary in KES. The calculator will compute all mandatory deductions and your net take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: What are the current tax brackets in Kenya?
A: 10% up to KES 288,000/year, 25% up to KES 388,000, and 30% for amounts above KES 388,000.

Q2: How is NHIF calculated?
A: NHIF uses fixed monthly rates from KES 150 to 1700 based on gross salary brackets.

Q3: What is the NSSF contribution rate?
A: Currently 6% of pensionable earnings, up to a maximum contribution amount.

Q4: Are there other deductions not included here?
A: Yes, this calculator doesn't include voluntary deductions like pension contributions, loans, or insurance.

Q5: How often should I calculate my net salary?
A: Whenever your gross pay changes or when tax/NHIF rates are updated by the government.