Payslip information in Kenya

Payslips are documents provided by an employer to an employee. They contain essential information about the employee’s salary and deductions and provide evidence of income. Payslips are important to understanding a worker’s pay and ensuring accuracy.

Payslips in Kenya come under Section 31 of the Employment Act. According to the act, employers are required to provide a written statement to employees, which discusses the particulars of employment. An employer should provide payslips to all workers on or before every payday excluding casual employees or any employees engaged on piece-rate, task-rate terms or for any period not exceeding six months. 

These payslips should contain particulars including

• the gross amount of the wages or salary of the worker,
• the amounts of any variable and statutory deductions and the purposes for which they are made, 
• where different parts of the net amount are paid, and
• the amount and method or each payment.

A Kenyan payslip is considered incomplete without statutory deductions, including SHIF-former NHIF, NSSF, and PAYE. Failure to register for these deductions can lead to statutory penalties for businesses and individuals. 

Payslip Deductions

• The Social Health Insurance Fund (SHIF) is a new healthcare financing system that aims to provide equitable and affordable healthcare to all Kenyans, regardless of their employment status. SHIF contribution rates are based on income, with a minimum and maximum limit. 
• The National Social Security Fund (NSSF) is a mandatory savings scheme and its deductions are based on gross monthly earnings. It is intended to ensure financial security in retirement, disability, or death. 
• PAYE (Pay As You Earn) is an income tax deduction mechanism and is calculated based on an employee’s taxable income and collected by employers on behalf of the Kenya Revenue Authority. 

Failure to register for these deductions can lead to statutory penalties for businesses and individuals.

Payslips not only ensure transparency and accountability of employers, but also positively impacts employees in the Kenyan payroll system.