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How to Calculate Net Salary in Kenya (Gross to Take-Home Pay)
6 min read · Updated 15 October 2026 · More salary tools
Your gross salary is what you are promised; your net salary is what actually lands in your account. The gap is made up of taxes and deductions, some statutory and some voluntary.
This guide explains every major deduction in Kenya and shows how they are applied in order, with a worked example you can follow along.
The deductions that reduce your pay
- PAYE: progressive income tax from 10% to 35%, less reliefs.
- NSSF: 6% employee contribution on pensionable pay, up to the upper limit.
- SHIF: 2.75% of gross salary for national health cover.
- Affordable Housing Levy: 1.5% of gross salary.
- Pension: qualifying contributions reduce taxable pay, up to KSh 30,000 per month.
- Insurance: premiums may earn insurance relief of 15%, capped at KSh 5,000 per month.
- Other deductions: loans, advances and any after-tax amounts.
Order of calculation
- Start with gross pay including taxable benefits.
- Subtract allowable deductions (NSSF, SHIF, Housing Levy, qualifying pension) to get taxable pay.
- Apply the PAYE bands to taxable pay, then subtract reliefs.
- Subtract PAYE and all remaining deductions from gross pay to get net pay.
Worked example: net pay on KSh 50,000
| Item | Amount |
|---|---|
| Gross salary | KSh 50,000 |
| Employee NSSF (6%) | KSh 3,000 |
| SHIF (2.75%) | KSh 1,375 |
| Affordable Housing Levy (1.5%) | KSh 750 |
| Taxable pay | KSh 44,875 |
| PAYE (after personal relief) | KSh 5,846 |
| Estimated net pay | KSh 39,029 |
Why your payslip may differ
- Employers may apply different treatment to some allowances.
- Pension and insurance reliefs change your tax.
- Loans, advances and union dues reduce net pay further.
- Statutory rates are updated periodically, so always confirm current figures.
Quick Answers
How to Calculate Net Salary in Kenya FAQs
What is the difference between gross and net salary?
Gross salary is total pay before deductions. Net salary is the amount left after PAYE and all deductions, which is what you actually receive.
How do I calculate my net salary in Kenya?
Subtract NSSF, SHIF, the housing levy and qualifying pension from gross pay to get taxable pay, apply the PAYE bands and reliefs, then subtract PAYE and all other deductions.
Which deductions reduce taxable income?
NSSF, SHIF, the Affordable Housing Levy and qualifying pension contributions are allowable deductions that reduce taxable pay.