The payslip arrives, and the net figure is smaller than the salary you agreed. Some of the difference is lawful and expected; some of it deserves a question. Knowing what each line means is the first step to checking that your pay is being handled correctly.
What must appear on a payslip in Kenya?
The Employment Act 2007 entitles an employee to an itemised written statement with each payment of wages, showing the gross amount, the deductions made and their purposes, and the net pay. Deductions are lawful only where a written law requires them, the contract authorises them, or you have agreed to them in writing. Anything outside those categories deserves a query, in writing, to payroll. If no statement is given at all, ask for one; the entitlement applies each time wages are paid.
What are NSSF, SHIF and PAYE?
The three principal lines are:
- NSSF: retirement contributions under the NSSF Act, with a share from you and a share from the employer, credited to your NSSF account
- SHIF: social health insurance contributions, which replaced the former NHIF arrangements from 2024
- PAYE: income tax withheld from your pay each month and remitted to the Kenya Revenue Authority against your PIN
What should you do if deductions look wrong?
Start with a written query to payroll asking for the calculation basis. Compare the deductions against your contract and against the rates currently published by the agencies. If the explanation is unsatisfactory, a labour officer can inquire into the complaint, and persistent shortfalls can form part of a wider claim for arrears. Keep every payslip: they are the primary evidence in any recovery claim.
Why records matter
Payslips, bank records and the contract together fix what was promised and what was actually received, and they save months of reconstruction when a dispute arises. We review pay and contract terms for employees through our contract practice, within the firm’s wider practice areas.
This article was written by Bruno Walela Situma, who advises on dispute resolution, insurance and litigation matters at CS Advocates LLP.
For guidance on your specific situation, contact CS Advocates LLP , call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.