Kenya Updated PAYE Payroll Calculator
ClearTax Kenya PAYE & Payroll Calculator - 2025
Process Multiple Employees Payroll
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This software does not collect, track, or store any payroll or personal data. All data processing is performed locally within the user’s web browser, and no data is transmitted to ClearTax servers. Any information saved is stored solely on the user's device through their browser’s local storage. No user data leaves the device at any time.
What can ClearTax Payroll calculator do?
ClearTax Payroll Tax Calculator is Kenya’s leading free payroll software, updated with 2025 tax rates. Accurately calculate net pay from gross salary for single or multiple employees with no subscription fees. Input deductions like NSSF, SHIF, pension, mortgage interest, or HELB, and generate instant, detailed payslips in PDF, CSV, or email formats. Businesses can upload CSV files to process bulk payroll, download individual payslips, or get a ZIP file of all payslips. Enjoy smart tax-saving tips and a mobile-friendly interface.
Ideal for Kenya PAYE tax calculations or small business payroll, ClearTax offers precise, user-friendly payroll management in 2025.
NSSF Deductions
The National Social Security Fund (NSSF) is a mandatory retirement savings scheme in Kenya designed to provide employees with financial security after their working years.
NSSF Tier I
NSSF Tier I deduction is a mandatory contribution for all Kenyan employees, calculated as 6% of your gross salary up to a cap of KSh 8,000 (the lower threshold). Meaning if your gross pay exceeds KSh 8,000, it maxes out at KSh 480 (6% of 8,000).
NSSF Tier II
NSSF Tier II is an optional additional contribution, also at 6%, but applies only to gross salary between KSh 8,000 and KSh 72,000 (upper threshold). For example, if your gross pay is KSh 50,000, it deducts 6% of KSh 42,000 (50,000 - 8,000), equal to KSh 2,520. It maxes out at KSh. 3,840.
Other Pension Contributions
This deduction covers extra pension savings you might pay into private schemes beyond NSSF. These extra savings together with NSSF, make a tax deductible portion capped at KSh 30,000 monthly, offering a tax advantage while boosting your retirement funds.
Mortgage Interests
Mortgage interest deductions refers to the interest you pay on a home loan. In Kenya, the tax-deductible amount is limited to KSh 30,000 p.m. For instance, if you pay KSh 40,000 in interest, only KSh 30,000 lowers your tax.
SHIF / SHA Contribution
The Social Health Insurance Fund (SHIF) or Social Health Authority (SHA) deduction takes 2.75% of your gross salary, with a minimum of KSh 300. For a KSh 50,000 salary, that’s KSh 1,375, but if you earn KSh 5,000, it’s still KSh 300.
Affordable Housing Levy (AHL)
The Affordable Housing Levy deducts 1.5% of your gross salary to support housing programs. No cap. For KSh 50,000, that’s KSh 750, with no cap—simple and automatic. It’s a small but compulsory contribution.
HELB Deduction
Higher Education Loans Board (HELB) repayments are for graduates repaying student loans. There’s no tax relief here, so it’s purely a post-tax reduction.
Sacco Contribution
Sacco contributions are voluntary payments to a Savings and Credit Cooperative, often for savings or loan repayments. Deducted after tax, they don’t affect your taxable income but reduce your net pay. Many Kenyans use this to build savings or access affordable credit within a cooperative framework.
Union Dues
Union dues are fees paid by members of labor unions to support advocacy and benefits. Taken from your salary after tax, they vary by union and don’t offer tax relief.
Health Insurance Premium
Health insurance premiums are monthly payments for private medical coverage. In Kenya, 15% of this cost can reduce your PAYE tax, up to a combined insurance relief limit of KSh 5,000, encouraging health security.
Life Policy Premium
Life insurance premiums fund policies that pay out upon death or maturity. If the policy lasts 10 years or more, 15% of the premium qualifies for tax relief, up to a KSh 5,000 cap shared with other insurance reliefs.
Education Policy Premium
Education policy premiums are payments for insurance plans covering future schooling costs. For policies maturing in 10+ years, 15% of the amount can lower your PAYE tax, within a KSh 5,000 total relief cap.