Question 1

How is PAYE calculated in this tool?

Accepted Answer

The tool starts with taxable pay, applies the current KRA monthly tax bands progressively, then subtracts the personal relief actually used for that estimate.

Question 2

Does the calculator include SHIF, NSSF and Housing Levy?

Accepted Answer

Yes. The calculator lets the user switch NSSF, SHIF and Housing Levy on or off so they can match their payslip or model different scenarios.

Question 3

What is the difference between taxable pay and net pay?

Accepted Answer

Taxable pay is the amount used to calculate PAYE after allowable pre-tax deductions. Net pay is the amount left after PAYE and the other deductions have already been removed from gross pay.

Question 4

Can pension be entered as a percentage or a fixed amount?

Accepted Answer

Yes. Pension contribution can be entered either as a percentage of gross pay or as a KES amount, with the applicable monthly relief cap still applied in the estimate.