This July, following a basic salary increase of 7% to 10%, teachers’ payslips and the payslips of government employees will have a new look.
Seven deductions will be levied from salaries, including some that will start this month of July.
This month, a teacher’s salary will be reduced by the following seven deductions:
1. Pay As You Earn
PAYE will take 30% of the teachers gross income. This will affect teachers from the lowest job grade B5 to the highest job grade D5.
2. Provident Fund (7.5%)
Privident funds will take away 7.5% of the teacher’s basic salary. This deduction will affect teachers aged 45 years or younger. This amount will go to the Public Service Superannuation Scheme (PSSS).
Public Service Superannuation Scheme (PSSS) is contribution pension plan where both the employer and the employee make financial contributions.
To check and validate your account dial *378#, enter your ID number. You can monitor your provident fund contribution and balance, and any updates from the schedule.
3. Union Deductions (Kuppet, Knut, Kusnet, and KEWOTA)
KNUT will withhold 2% of basic salary of Primary school teachers, while for secondary school teachers and tertiary institutions KUPPET will withhold 1.8% of their basic pay.
Teachers in special education will contribute 1.45% of their basic pay as a contribution to Kusnet.
Female teachers will contribute sh200, towards Kewota.
4. Housing Fund Levy (1.5%)
This is a new deduction teachers will notice in their July payslips. The housing levy will deduct 1.5% of gross income.
5. Deductions for loans and premiums
Teachers with bank loans or sacco loans will not be left behind.
Further, the teachers who have invested in insurance businesses by purchasing insurance policies, a deduction of the amount in the agreement policy is to be effected.
6. Deduction for NHIF (2.75%)
President Ruto on June 26, 2023 proposed changes to the National Hospital Insurance Fund (NHIF) that will improve pay equity.
The proposal requires that a employees in Kenya to contribute 2.75 percent of their gross income to the NHIF.
7. Exorbitant Personal Loan Rates
Extra charges will affect teachers for the repayment of bank or sacco loans.