Salary increment planner

What the salary increment planner does

Pay reviews are easier when you can see the whole picture. List each employee's current basic pay and the percentage rise you are considering, and the planner shows the new salary, the monthly and yearly increase for each person and in total, and whether the total stays within the budget you set.

Who it is for

Owners and managers preparing annual pay reviews, and finance staff who must show what a round of increases will cost before they agree it.

How to use the workbook

1. Enter your increment budget for the year.
2. List each employee and their current basic pay.
3. Type the percentage increase for each person.
4. Read the new pay, the yearly cost and whether you are within budget.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Current pay, rise percentage and new pay
• Monthly and yearly cost of each increase
• Total cost against your budget
• A clear within budget or over budget message
• Room for 60 employees

The workbook has these sheets: Instructions, Increments. The main table has the columns Employee; Current basic pay; Increase; New basic pay; Monthly increase; Yearly cost. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Remember that a rise also raises NSSF, SHIF and the Housing Levy.
• Budget for the employer's share of statutory costs as well.
• Put the effective date in writing with each employee's letter.
• Keep a record of the reason for each increase.

Why keep this record

Staff records go wrong in small, repeated ways: a figure typed twice, a deadline forgotten, a promise that nobody wrote down. A tidy workbook that everyone uses the same way removes most of those problems. It also gives you something to show an employee, an auditor or a labour officer when a question comes up months later, and it makes the next payroll quicker because the facts are already in one place.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Payroll records are personal data and tax records at once, so keep the file somewhere only the people who need it can open, and keep each month's copy for at least five years. Statutory rates such as NSSF limits and the Housing Levy change, so check the Rates sheet against the official source before you rely on a figure.

Read how to run payroll for a small business for the wider picture. See more payroll templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Guide: How to run payroll for a small business in Kenya
• Guide: How PAYE is calculated in Kenya, step by step
• Guide: NSSF contributions explained: tiers, limits and what you pay
• Another template: Annual PAYE and payroll summary
• Another template: Annual leave planner and register
• Another template: Benefits and allowances register

Need something different? Request a custom template, browse all guides or see every Excel template.