Pay As You Earn (PAYE) is a progressive tax withheld from employee earnings. As an employer, you act as the custodian for the KRA and are legally bound to compute, deduct, and remit these amounts monthly.
Deductions, Reliefs & Deadlines
- Personal Relief: Every resident employee is granted a statutory Personal Relief of KES 2,400 per month, which directly subtracts from their computed tax.
- Statutory Deductions: In addition to PAYE, employers must deduct and remit Social Health Authority (SHA) at 2.75%, NSSF tier rates, and the Affordable Housing Levy (AHL) at 1.5%.
- Filing Deadline: All statutory payroll deductions must be remitted via iTax by the 9th day of the following month.
