If you receive a monthly salary, you will notice a significant reduction in your October pay slip due to the introduction of SHIF.
SHIF, or the Social Health Insurance Fund, was set to begin on October 1, 2024.
The Ministry of Health released a notice announcing the shift from the National Hospital Insurance Fund (NHIF) to SHIF and detailing the registration process for employees.
Here’s an overview of the changes to your pay slip:
Previous NHIF Contributions:
- Monthly NHIF: KSh 500 – KSh 1,700
- Annual NHIF: KSh 6,000 – KSh 20,400
Impact of the New 2.75% Deduction:
- Salary: Monthly Deduction
- KSh 20,000: KSh 550
- KSh 50,000: KSh 1,375
- KSh 70,000: KSh 1,925
- KSh 100,000: KSh 2,750
- KSh 150,000: KSh 4,125
- KSh 200,000: KSh 5,500
- KSh 500,000: KSh 13,759
- KSh 1,000,000: KSh 27,500
Deductions have evolved over the past two years, with maximum deductions outlined below:
Deductions Comparison:
Deductions | October 2022 | October 2024 |
---|---|---|
NSSF | KSh 200 | KSh 2,160 |
NHIF | KSh 500-1,700 | 2.75% |
Housing Levy | KSh 0 | 1.5% |
PAYE (Max) | 30% | 35% |
Reactions from Kenyans include:
- @phtechphotgraphy3127: “This is infuriating. A 35% PAYE deduction? Were they there when you got the job? Did they pay for your education?”
- @martinokwaro3191: “With these unfair deductions, we still have to cope with rising prices of goods and inflated bills for electricity and water, without seeing any development from the taxes they take from us… God sees what they are doing; keep oppressing us.”
- @roselinealuora6400: “What madness is this, Kenyans?! Why the sudden hike in taxes and levies overnight?! 😢😢”
- @kabirukaranja6909: “The Income Tax Act allows for a 15% relief on contributions to a health policy, as stated in section 31 and the Third Schedule of the Act.”
- @harrisonmarira2062: “If you have a loan, the Sacco is instructed to deduct less so that your payslip can be taxed accordingly 😊.”
- @kagushpinch4823: “You haven’t seen true hardship until you’ve seen a military payslip—it’s like living in hell!”
- @Watt-er8or: “Your payslip might only decrease a bit when you’re healthy, but when you fall ill, it stays the same. The focus should be on good health. Many rich people have become poor due to illness. This SHIF may be appreciated later, not right now.”