Pay & working terms · 3 min read
How to read a payslip in Kenya
Work through the pay period, earnings and deductions so you can explain how the bank payment was calculated.
Work through the pay period, earnings and deductions so you can explain how the bank payment was calculated.
Confirm the identity and pay period
Check your name, employee reference and the month covered. Keep an eye on start dates, unpaid days and arrears when comparing one month with another. A payslip for a partial month is not directly comparable with a full-month offer.
Use a secure copy for your records. If someone requests a payslip during recruitment or a financial application, verify the purpose and receiving organisation before sharing it. It may contain identifiers and deductions that reveal more than your salary.
Read the earnings before the deductions
Identify basic pay and each cash allowance, then separate regular amounts from overtime, commission, a bonus or an adjustment. Check whether the payslip includes benefits in kind in the taxable figure without paying that amount as cash.
Add the cash earnings using the payroll labels, then compare the total with the gross figure. If the totals differ, ask payroll which non-cash or taxable item accounts for the difference rather than assuming the gross amount is the bank transfer.
Trace NSSF, SHIF and housing levy
A standard payslip can show employee NSSF, SHIF and the affordable housing levy. These are different items with different calculation rules. Under NSSF Year 4 from February 2026, the employee share is 6% up to the KES 108,000 upper earnings limit.
The Work.ke calculator displays the employee NSSF tiers separately. Employer contributions, where shown for information, should not be mistaken for another deduction from your pay. Check the actual membership and remittance records through the official services when reconciling contributions.
Check taxable pay and PAYE
Taxable pay can differ from cash gross because allowable deductions and taxable benefits affect it. KRA’s December 2024 changes include deductibility of SHIF and the housing levy, and specify limits for other deductions.
PAYE uses progressive bands. The highest band reached does not apply to all of your taxable salary. Personal relief reduces calculated tax for an eligible resident employee; it is not an additional cash allowance paid into the bank.
Reconcile the final transfer
Starting from cash earnings, subtract the employee deductions and any other authorised payroll items to reconcile net pay. Check loan repayment, voluntary deductions and prior-period adjustments separately.
When a line is unclear, ask for its name, rate or amount, calculation base and period. Keep the offer, payslip and answer together. A calculator can help identify where the difference starts, but it cannot determine the treatment of every individual benefit or exemption.
Sources and further reading
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