1. What is Net Salary?

Net salary is the amount an employee takes home after all deductions (taxes, NHIF, NSSF, pension, etc.) have been subtracted from the gross salary. It represents the actual amount deposited to your bank account.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Salary — Total salary before any deductions
• Taxes — PAYE (Pay As You Earn) and other government taxes
• Deductions — NHIF, NSSF, pension contributions, loans, etc.

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps in personal financial planning, budgeting, and ensuring you're being paid correctly according to Kenyan labor laws.

4. Using the Calculator

Tips: Enter your gross salary in KES, then all applicable taxes and deductions. The calculator will show your take-home pay. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are common deductions in Kenya?
A: Typical deductions include PAYE (income tax), NHIF (health insurance), NSSF (pension), housing levy, and loan repayments.

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

Q3: What's the difference between net and gross salary?
A: Gross is your salary before deductions, while net is what you actually receive after all deductions.

Q4: Are bonuses included in gross salary?
A: Yes, all taxable benefits and bonuses should be included in your gross salary calculation.

Q5: How often should I calculate my net salary?
A: It's good practice to calculate it whenever your salary changes or at least annually when tax rates are adjusted.