As an employee, your employer will deduct this tax and remit it to KRA on your behalf through KRA Online Portal. A special Microsoft Excel File dabbed iTax P10 file is used to compile all employee payroll data into a single upload-able zip file. See our iTax P10 how-to guide on how to fill this in.

PAYE returns deadline for a given month is the 9th day of the following month. Late payments attract a penalty fine of KES 10,000 (USD 100) charged to the employer.

Similarly, NSSF (National Social Security Fund) and NHIF (National Hospital Insurance Fund) are mandatory deductions collected and remitted to relevant statutory bodies on behalf of the employee.

NB:

1. Effective January 2022, insurance relief is now applicable to NHIF after gazettement of the The Finance Act No.8 of 2021
2. Effective July 2023, 1.5% of gross salary is deducted from employee and another 1.5% as employer contribution as contribution towards housing levy. This follows the enforcement of Finance act 2023
3. Effective October 2024, 2.75% of gross salary is deducted from each employee as Social Health Insurance Fund (SHIF) which replaces NHIF moving forward.
4. Effective December 2024, SHIF and housing levy are now reliefs deductible before tax.
5. Effective February 2025, 3rd Schedule of NSSF increments comes into effect.

Our Online Payroll will automatically generate your iTax P10 data, NSSF Excel file and SHIF Byproduct for you with its in-built statutory formats. It will also give you a broad array of Human Resource Management tools not available on PAYE calculators in excel sheets.

Try our other calculators:

1. Fringe Benefit Calculator
2. Hourly rate and daily rate calculator
3. Service Gratuity Calculator