KENYA KRA PAYE Calculator 2017, 2018 - Salary, Income Tax & Net Pay
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Calculate your KRA PAYE, net pay from gross salary using the new income tax rates, NHIF & NSSF contributions and personal relief of KSh15,360 for year 2017 and KSh16,896 for year 2018
net pay, paye, salary, income tax, kra, kenya revenue authority, deductions, nhif, nssf pension, i-tax
KRA PAYE Calculator
KRA PAYE Calculator: This calculator works out PAYE due given the taxable pay. It can work out PAYE for a single month or the whole year, either for this year or for a year in the recent past.
| Gross Pay |
KSh XX.00 |
| NSSF Contribution |
KSh XX.00 |
| Taxable Pay |
KSh XX.00 |
| Personal Relief |
KSh XX.00 |
| Insurance Relief |
KSh XX.00 |
| PAYE |
KSh XX.00 |
| NHIF Contribution |
KSh XX.00 |
| Net Pay |
KSh XX.00 |
| Effective Tax Rate |
X.00% |
Click here to access KRA PAYE Calculator
KRA PAYE Calculator – Tax Rates
| ​Taxable income | Tax Rate |
|---|
| KSh0 – KSh134,164 |
10% |
| KSh134,165 – KSh260,567 |
15% |
| KSh260,568 – KSh386,970 |
20% |
| KSh386,971 – KSh513,373 |
25% |
| KSh513,373 and Above |
30% |
What is PAYE
Pay-as-you-earn is the process by which the government via the Kenya Revenue Authority (KRA) collects employee taxes directly from the employer. It’s the method of deducting income tax from salaries and wages applies to all income from any office or employment. Thus "pay-as-you-earn" applies to weekly wages, monthly salaries, annual salaries, bonuses, commissions, directors' fees (whether the director is resident or non-resident) pensions paid to pensioners who reside in Kenya, and any other income from an office or employment. The system applies to all cash emoluments and all credits in respect of emoluments to employees' accounts with their employers, no matter to what period they relate. It does not include earnings from "casual employment" which means any engagement with any one employer, which is made for a period of less than one month. Although, regular part-time employees and regular casual employment where the employees are employed casually but regularly are not considered to be casual employees. It is the employer's statutory duty to deduct income tax from the pay of his employees whether or not he has been specifically told to do so by the department.
How is PAYE calculated in 2018
| Taxable income | Tax Rate |
|---|
| KSh0 - KSh147,580 |
10% |
| KSh147,581 - KSh286,623 |
15% |
| KSh286,624 - KSh425,666 |
20% |
| KSh425,667 - KSh564,709 |
25% |
| KSh564,710 and Above |
30% |
How is PAYE calculated in 2017
| Taxable income | Tax Rate |
|---|
| KSh0 - KSh134,164 |
10% |
| KSh134,165 - KSh260,567 |
15% |
| KSh260,568 - KSh386,970 |
20% |
| KSh386,971 - KSh513,373 |
25% |
| KSh513,373 and Above |
30% |
Who is liable for PAYE
Any person who receives employment income of more than KSh11,135 per month either as a full time employee or part time employee; thus any employer is required to deduct tax the tax due from any remuneration paid to their employees. For pay-as-you-earn purposes the term "employer" is to be taken, when necessary, to include:
- Any person having control of payment of remuneration
- Any agent, manager or other representative in Kenya of any employer who is outside Kenya
- Any paying officer of Government or other public authority
- Any trust or insurance company or other body or person paying pensions.
For pay-as-you-earn purposes an "employee" is defined as inclusive of any holder of an appointment of office, whether public, private or calling, for which remuneration is payable. It includes an employee who retires on pension and stays in Kenya where pensions received from a registered pension fund exceed Kshs. 15,000 per month.
What is gross pay
For pay-as-you-earn purposes gross pay includes income in respect of any employment or service rendered, accrued in or derived from Kenya. Gross pay includes:
- Wages, salary, leave pay, sick pay, payment in lieu of leave, directors' fees and other fees, overtime, commission, bonus, gratuity or pension whether payable monthly or at longer or shorter intervals.
- Cash allowances, e.g. house or rent allowance, telephone allowance, round sum allowance etc.
- The amount of any private expenditure of the employee paid by the employer otherwise than as a loan, e.g. house rent, grocery bills, electricity, water, telephone bills, school fees.
- Non-cash benefits when the aggregate value exceeds Kshs.3000 per month.
- The value of housing, where provided by the employer.
Any amount which is mere reimbursement of expenses of employment, e.g. subsistence allowance when on duty away from home, mileage allowance for use of employee's car or for traveling expenses incurred in the course of employment will be excluded. Such amounts must, however, be shown on any return of wages called for by the Domestic Taxes Office.
What is pay period
For pay-as-you-earn purposes the employer defines the "pay period" as the intervals of pay of an employee. This could be weekends, monthly, annually or bi-weekly.
What is taxable income
This is defined as gross income minus any deductions; exemptions or other adjustments that are allowable in that pay period e.g. pension contributions.
What is net pay
This is the employee's take home pay received after any deductions or taxes have been subtracted from gross income. It's also known as net salary or net income and it's the amount of pay remaining for issuance to an employee after taxes and contributions.
What is NSSF
The National Social Security Fund (NSSF) is a government agency that was established in 1965 through an Act of Parliament. It's mandatory national scheme whose main objective was to provide basic financial security benefits to Kenyan upon retirement for employees in the both the formal and informal sectors of the economy. NSSF pension contribution rates are based on an individual's gross income.
How is NSSF contribution calculated
For the purposes of the National Social Security Fund ACT No. 45 of 2013, the Upper Earning Limit (UEL) will be KES. 18,000 while the Lower Earnings Limit (LEL) will be KES 6,000. The pension contribution will be 12% of the pensionable wages made up of two equal portions of 6% from the employee and 6% from the employer subject to an upper limit of KES 2,160 for employees earning above KES 18,000. The employee contribution shall be drawn directly from his salary and wages while the employers contribution shall come directly from the employer. The contributions relating to the earnings below the LEL of the earnings (a maximum of KES. 720) will be credited to what will be known as a Tier I account while the balance of the contribution for earnings between the LEL and the UEL (up to a maximum of KES 1,440) will be credited to what will be known as a Tier II account.
What is NHIF
The National Hospital Insurance Fund (NHIF) is a government agency that was established in 1966 as a department under the Ministry of Health through an Act of Parliament. Its core mandate is to provide medical insurance cover to all its members and their declared defendants (spouse and children). The NHIF membership is open to all Kenyans who have attained the age of 18 years and years and have a monthly income of more than Kshs 1,000 and contribution rates are based on an individual's gross income.
How is NHIF contribution calculated
| Salary | Rate |
|---|
| KSh 5,999 |
KSh 150 |
| KSh 6,000 – 7,999 |
KSh 300 |
| KSh 8,000 – 11,999 |
KSh 400 |
| KSh 12,000 – 14,999 |
KSh 500 |
| KSh 15,000 – 19,999 |
KSh 600 |
| KSh 20,000 – 24,999 |
KSh 750 |
| KSh 25,000 – 29,999 |
KSh 850 |
| KSh 30,000 – 34,999 |
KSh 900 |
| KSh 35,000 – 39,999 |
KSh 950 |
| KSh 40,000 – 44,999 |
KSh 1,000 |
| KSh 45,000 – 49,999 |
KSh 1,100 |
| KSh 50,000 – 59,999 |
KSh 1,200 |
| KSh 60,000 – 69,999 |
KSh 1,300 |
| KSh 70,000 – 79,999 |
KSh 1,400 |
| KSh 80,000 – 89,999 |
KSh 1,500 |
| KSh 90,000 – 99,999 |
KSh 1,600 |
| KSh 100,000 & Above |
KSh 1,700 |
| Self-Employed |
KSh 500 |
What is personal relief
A resident individual with taxable income is entitled to a personal relief of Kshs. 1,280 per month (i.e. Kshs. 15,360 per annum). This is a uniform relief and employers are advised to automatically grant personal relief to all employees irrespective of their marital status.
What is insurance relief
A resident individual is entitled to insurance relief at the rate of 15% of insurance premiums paid subject to maximum relief amount of Kshs. 5,000 per month (or Kshs. 60,000 per annum) if he proves that;
- He has paid premium for an insurance made by him on his life, or the life of his wife or of his child and that the Insurance secures a capital sum, payable in Kenya and in the lawful currency of Kenya; or
- His employer paid premium for that insurance on the life and for the benefit of the employee which has been charged to tax on that employee; or
- Both employee and employer have paid premiums for the insurance.
What is a pay slip
This formal notification is known as the "monthly pay slip" and may be in any form convenient to the employer provided that the above information is given. Every employer is required to provide each liable employee on payment of remuneration with a written statement showing:
- Monthly pay
- PAYE deductions
KRA PAYE Calculator – Who is liable for PAYE
Any person who receives employment income of more than KSh11,135 per month either as a full time employee or part time employee; thus any employer is required to deduct tax the tax due from any remuneration paid to their employees. For pay-as-you-earn purposes the term “employer” is to be taken, when necessary, to include:
- Any person having control of payment of remuneration
- Any agent, manager or other representative in Kenya of any employer who is outside Kenya
- Any paying officer of Government or other public authority
- Any trust or insurance company or other body or person paying pensions.
For pay-as-you-earn purposes an “employee” is defined as inclusive of any holder of an appointment of office, whether public, private or calling, for which remuneration is payable. It includes an employee who retires on pension and stays in Kenya where pensions received from a registered pension fund exceed Kshs. 15,000 per month
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