The payslip: four statutory deductions and a basic wage that drives severance

By Equipo Saplic Published on 12/08/2026 Updated on 12/08/2026

And a reason to verify remittance separately.

In this guide
  1. What should appear
  2. Why the basic wage matters
  3. Verify remittance
  4. The remittance deadlines
  5. What to check monthly
  6. Keep your payslips
  7. If something is wrong

A Kenyan payslip in 2026 should show four statutory deductions. If yours shows the old NHIF banded amount, it has not been updated.

What should appear

  • Basic wage, stated separately
  • Allowances, itemised
  • SHIF — 2.75% of gross, minimum KES 300
  • NSSF — Year 4 rates from February 2026
  • Affordable Housing Levy — 1.5%
  • PAYE

Why the basic wage matters

Severance is calculated on basic wages: monthly salary ÷ 30 × 15 × years of service.

A package structured with a small basic and large allowances produces less severance, even where the monthly total is the same.

At offer stage, ask what the basic is separately from allowances.

Verify remittance

The deduction appearing on your payslip does not prove your employer sent it.

  • NSSF — check your member statement
  • SHIF — verify your registration and contribution status

Gaps affect your pension and your access to health cover, and they are far easier to correct while you are still employed.

The remittance deadlines

SHIF must be remitted by the 9th of the following month, with a 3% monthly penalty for late payment.

A pattern of late remittance is a warning sign about the employer's finances.

What to check monthly

  1. That the basic wage matches your contract
  2. That SHIF is 2.75% of gross, not a fixed band
  3. That NSSF reflects the current limits
  4. That the Housing Levy appears
  5. That no unauthorised deduction is present

Keep your payslips

They evidence your basic wage across the period of service, which is the base for severance and for leave payouts alike.

If something is wrong

Raise it in writing with your employer, then with the Labour Office.

Frequently asked questions

What deductions should be on my payslip?
SHIF at 2.75% of gross with a KES 300 minimum, NSSF at Year 4 rates, the Affordable Housing Levy at 1.5%, and PAYE.
Why does the basic wage matter?
Because severance is calculated on basic wages — monthly salary divided by 30, times 15, times years. A small basic with large allowances produces less severance.
How do I verify my contributions reached NSSF and SHIF?
Check your NSSF member statement and your SHIF registration and contribution status directly. A payslip deduction does not prove remittance.
When must SHIF be remitted?
By the 9th of the following month, with a 3% monthly penalty for late payment.
What if my payslip still shows NHIF?
It has not been updated. SHIF replaced NHIF in 2024 and works as a 2.75% deduction rather than a fixed band.

Sources

Put this into practice

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