What is each deduction?
PAYE (Pay As You Earn) — Kenya's income tax withheld by your employer each month. Calculated on your taxable income (gross minus NSSF contributions) using a progressive rate from 10% up to 35%. A personal relief of KES 2,400/month is subtracted from the tax owed.
SHIF (Social Health Insurance Fund) — replaced NHIF in October 2024. Charged at 2.75% of gross salary with no ceiling. Funds public health services via the Social Health Authority (SHA).
NSSF Tier I & Tier II — pension savings under the NSSF Act 2013. Tier I is 6% on earnings up to KES 7,000 (= KES 420/month). Tier II is 6% on the next KES 29,000 above that (= up to KES 1,740/month if you earn KES 36,000+). Your employer contributes matching amounts on your behalf.
Affordable Housing Levy — 1.5% of gross salary, introduced by the Finance Act 2023, funds the government's housing programme. Your employer also contributes 1.5%.
HELB — Higher Education Loans Board repayment. A fixed monthly deduction if you have a government student loan. Check your HELB loan statement for your exact monthly figure.