PAYE & Net Salary Calculator Kenya 2026
Enter a gross monthly salary to see your PAYE, NSSF, SHIF and Housing Levy deductions and your take-home pay — worked out by the same engine HRHub uses to run payroll for Kenyan employers.
Rates effective 01/02/2026
Results
How PAYE and net salary are calculated
Each month, deductions are worked out in this order:
- NSSF: 6% of pay up to KES 108,000, at most KES 6,480 a month.
- SHIF: 2.75% of gross pay, at least KES 300.
- Housing Levy: 1.5% of gross pay.
- Taxable pay: gross pay less SHIF, Housing Levy and the pension allowance — your NSSF plus any pension contribution, up to the lower of 30% of basic pay and KES 30,000 a month.
- PAYE before relief: taxable pay charged band by band using the rates below.
- PAYE: less personal relief of KES 2,400 and any insurance relief, never below zero.
- Net pay: gross pay less NSSF, SHIF, Housing Levy, pension and PAYE.
PAYE tax bands (rates effective 01/02/2026)
| Monthly taxable pay | Rate |
|---|---|
| First KES 24,000 | 10% |
| Next KES 8,333 (KES 24,001 – KES 32,333) | 25% |
| Next KES 467,667 (KES 32,334 – KES 500,000) | 30% |
| Next KES 300,000 (KES 500,001 – KES 800,000) | 32.5% |
| Above KES 800,000 | 35% |
Reliefs and allowances
| Relief or allowance | Amount |
|---|---|
| Personal relief | KES 2,400 a month, off PAYE |
| Insurance relief | 15% of qualifying premiums, up to KES 5,000 a month, off PAYE |
| Pension (defined-contribution) allowance | NSSF + pension contributions, up to the lower of 30% of basic pay and KES 30,000 a month, off taxable pay |
| SHIF and Housing Levy | The employee's contributions are deducted in full from taxable pay |
Statutory deductions
| Deduction | Employee | Employer |
|---|---|---|
| NSSF | 6% of pay up to KES 108,000 (max KES 6,480) | Matches the employee |
| SHIF | 2.75% of gross, minimum KES 300 | — |
| Housing Levy | 1.5% of gross | 1.5% of gross |
| PAYE | Banded tax on taxable pay, less reliefs | — |
Worked example: KES 50,000 a month
An employee earning KES 50,000.00 with no pension or insurance:
| Step | Amount |
|---|---|
| Gross pay | KES 50,000.00 |
| NSSF (Tier I KES 540.00 + Tier II KES 2,460.00) | KES 3,000.00 |
| SHIF | KES 1,375.00 |
| Housing Levy | KES 750.00 |
| Pension allowance (NSSF only) | KES 3,000.00 |
| Taxable pay | KES 44,875.00 |
| PAYE before relief | KES 8,245.85 |
| Personal relief | KES 2,400.00 |
| PAYE | KES 5,845.85 |
| Net pay | KES 39,029.15 |
With a KES 10,000.00 pension contribution and a KES 2,000.00 life insurance premium on KES 100,000.00, the pension allowance rises to KES 16,000.00 (NSSF KES 6,000.00 + pension), insurance relief is KES 300.00, PAYE is KES 16,008.35 and net pay is KES 63,741.65. The pension comes out of net pay; the insurance premium does not, because you pay it yourself.
Frequently asked questions
How much PAYE do I pay on KES 50,000?
KES 5,845.85 a month, leaving a net salary of KES 39,029.15 after NSSF, SHIF and Housing Levy, assuming no pension, insurance or other benefits.
Do SHIF and Housing Levy reduce my PAYE?
Yes. Since the Tax Laws (Amendment) Act 2024, your SHIF and Housing Levy contributions are deducted from pay before PAYE is charged, so they lower your tax.
Why isn't my insurance premium deducted from net pay?
A qualifying life, education or health insurance policy that you pay for earns insurance relief of 15% of the premium (up to KES 5,000 a month) off your PAYE. The calculator treats the premium as paid by you, not through payroll.
What does my employer pay on top of my salary?
A matching NSSF contribution and Housing Levy of 1.5% of gross pay. These are employer costs and are not deducted from you.
When must PAYE be paid to KRA?
Employers remit PAYE deducted in a month by the 9th of the following month.
Run payroll for your whole team
HRHub calculates PAYE, NSSF, SHIF and Housing Levy for every employee, produces payslips and P9 forms, and gives you portal-ready KRA, NSSF, SHA and Housing Levy files each month.
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