Gross vs net salary in Kenya: compare an offer correctly

Start with the label beside the number

Basic salary is the core pay figure before allowances and deductions. Gross pay generally brings together the earnings that payroll treats as gross for the period. Net pay is the amount remaining after deductions. A number labelled only “salary” does not establish which of these the employer means.

Ask for the basic salary, regular cash allowances and expected deductions in writing. If an advert quotes a range, ask how the starting point is determined. Do not build a budget using the top of the range before the employer confirms your offer.

Separate cash from benefits

Medical cover, meals, transport or accommodation can matter greatly, but their stated value is not necessarily cash available for rent or groceries. Ask how each benefit is provided, whether it is optional, and whether payroll treats any value as taxable.

A bonus, sales commission or overtime payment can also change between months. Compare offers using the predictable amount first, then examine the conditions attached to variable earnings. A headline “up to” amount may depend on targets rather than represent guaranteed gross pay.

Understand the main statutory deductions

For the standard resident-employee example used in our calculator, employee NSSF, SHIF and housing levy are deducted from regular gross cash pay, and the allowable amounts reduce taxable employment income before PAYE. PAYE is then calculated in bands, with resident personal relief applied.

The February 2026 NSSF employee ceiling is KES 6,480. The employer’s matching NSSF contribution is separate from your own deduction. A payroll statement may show both, so make sure you do not subtract the employer contribution again when reconciling your bank payment.

Compare a written offer with an estimated month

Enter the regular gross cash figure in the net salary calculator, then list any additional items it excludes: loans, voluntary contributions, insurance relief, other pension payments or taxable benefits. Keep those differences beside the estimate.

If the employer promises a net amount, ask for the gross-pay structure and who bears the effect of a change in deductions. A net-pay promise needs clear written terms; it cannot be inferred from a recruiter saying that an amount is “what you will earn”.

Use the first payslip to close the comparison

Compare the payroll period and days paid before treating a difference as an error. A first month may cover only part of the month, and one-off adjustments can affect the bank transfer.

Then compare each earning and deduction with the offer. Ask payroll to explain an unfamiliar line, its calculation base and the period it covers. Keep the explanation with the payslip so that later months can be compared consistently.

Explore this topic

Entry-level jobs in Kenya · Pay tables and calculations · More guides in this topic