A salary offer is almost always quoted as gross pay, but you spend net pay. The difference between the two is PAYE and the statutory deductions, and it grows as your pay rises. Knowing the numbers before you negotiate helps you ask for the right amount.

What comes off gross pay

For a typical employee the deductions are:

SHIF, the Housing Levy and NSSF are deducted before PAYE is calculated, which reduces the tax. Personal relief of KES 2,400 a month then reduces PAYE directly.

How much of a raise do you keep?

At a salary of KES 100,000, net pay is about KES 70,400. If you move to KES 120,000, net pay is about KES 83,500. The raise of KES 20,000 gives about KES 13,100 in your pocket, roughly 65 cents on the shilling, because the extra pay is taxed at 30% and the other deductions also rise. At higher pay the share you keep falls further.

Test your own raise in the PAYE calculator and compare the old and new net pay.

Work backwards from the net you want

If you know the take-home pay you need, the net to gross salary calculator finds the gross salary that delivers it, with the deductions applied. The gross-to-net salary table lists net pay for a whole range of gross salaries so you can see where the thresholds are.

What else to negotiate

Cash is not the only thing worth asking for. Some benefits are taxed lightly or not at all and can be worth more than the same amount in salary:

  • Pension contributions above the statutory minimum are deductible up to a limit; see the tax reliefs calculator.
  • Insurance premiums for life or health cover can earn relief of 15%, up to KES 5,000 a month.
  • Allowances and benefits such as housing, a car or meals are taxable at set values; use the taxable benefits calculator to see their cost.
  • Leave, flexibility and training, which have no tax cost for you.

Overtime and bonuses

A bonus is taxed at your marginal rate, so a bonus may feel smaller than expected. See what you would keep with the bonus tax calculator. Overtime has its own multipliers, which the overtime pay calculator applies.

Check the minimum wage

If you are offered a role at the lower end of the scale, check the figure against the gazetted minimum for your location and job category with the minimum wage checker.

Before you sign

  1. Ask whether the figure is gross or net, and whether it includes allowances.
  2. Ask for the salary structure in writing.
  3. Check the first payslip against the offer, and compare it with the numbers in this guide.

Employers who want to see the full cost of an offer can use the staff cost and headcount budget planner to add the employer's NSSF and Housing Levy on top.

These figures are examples. Confirm current rates with KRA, NSSF and the Social Health Authority.