Salary Raise Calculator Kenya
See exactly how much more you take home after your pay rise — after all deductions
Before vs After Raise — Full Comparison
| Item | Current Salary | After Raise | Change |
|---|---|---|---|
| Gross Salary | — | — | — |
| NSSF | — | — | — |
| SHIF (2.75%) | — | — | — |
| Housing Levy (1.5%) | — | — | — |
| PAYE (Income Tax) | — | — | — |
| Net Take-Home Pay | — | — | — |
How Kenya Salary Raise Calculations Work
When you receive a pay raise in Kenya, your net take-home increase is always less than the gross raise amount due to higher statutory deductions:
- NSSF: 6% of gross salary (Tier I: first KES 8,000; Tier II: KES 8,001–72,000). Capped at KES 4,320/month.
- SHIF: 2.75% of gross salary, no cap. Replaced NHIF from October 2024.
- Housing Levy: 1.5% of gross salary. Both employer and employee contribute.
- PAYE: Progressive tax rates — 10%, 25%, 30%, 32.5%, 35%. Personal relief of KES 2,400/month reduces your bill.
The "Marginal Take-Home Rate" shows what fraction of each additional shilling you actually keep. For higher earners, this can be as low as 60–65 cents per shilling of raise.
Kenya PAYE Tax Bands 2025/2026
| Monthly Taxable Income (KES) | Tax Rate |
|---|---|
| Up to 24,000 | 10% |
| 24,001 – 32,333 | 25% |
| 32,334 – 500,000 | 30% |
| 500,001 – 800,000 | 32.5% |
| Above 800,000 | 35% |
Personal Relief: KES 2,400/month (KES 28,800/year) is deducted from calculated PAYE.
Frequently Asked Questions
Why is my take-home raise less than my gross raise?
When your gross salary increases, so do your NSSF, SHIF, and Housing Levy contributions (as they're percentage-based). More importantly, you may move into a higher PAYE tax bracket, meaning a larger portion of the additional income is taxed. This is called the "marginal tax effect."
Does a salary raise affect my NSSF contributions?
Yes, up to a point. NSSF is 6% of gross salary but is capped at KES 4,320/month (on a KES 72,000 gross salary). If you already earn over KES 72,000 and receive a raise, your NSSF contribution will not increase further.
What is the SHIF deduction after a raise?
SHIF (Social Health Insurance Fund) is 2.75% of your gross salary with no cap. Every raise will increase your SHIF deduction proportionally.
How does PAYE change with a salary increase in Kenya?
PAYE uses progressive tax bands. If your raise pushes part of your income into a higher band, only that portion is taxed at the higher rate — not your entire salary. Our calculator applies this correctly using the 2025/2026 KRA tax bands.
Is the Housing Levy deducted from my raise?
Yes. The Affordable Housing Levy is 1.5% of gross salary, and both you and your employer contribute. So a raise of KES 10,000 means an additional KES 150/month in Housing Levy from your pay.