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Can anyone help me understand this payslip deductions ?

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makarapa

Village Elder
#9
DEFINED CONTRIBUTION is what goes to your pension scheme hence offset from your pay before calculating Paye, TAX CHARGED is PAYE charged on the first Kshs. 38,893/= of your pay, MPR USED is your statutory monthly relief of Kshs. 1,162 granted under the Income Tax Act hence deductible from the calculated Paye to determine what is to be remitted. In my opinion, i think there might be a bug in the payroll software as the computation of the TAX CHARGED item is not strictly as per the Income Tax Act. Accountants to weigh in on the matter
 

Dunya

Village Elder
#18
This guys salary is about 30k gross p/m if you look at his tax charged of around 5k. Then he has been paid a lumpsum of abt 200k most probably gratuity upon expiry of a contract which is making him pay the lumpsum tax of 28k. So effectively hana kazi unless the contract is renewed ama ameresign ama akafutwa. Take that to the bank
 
#19
This guys salary is about 30k gross p/m if you look at his tax charged of around 5k. Then he has been paid a lumpsum of abt 200k most probably gratuity upon expiry of a contract which is making him pay the lumpsum tax of 28k. So effectively hana kazi unless the contract is renewed ama ameresign ama akafutwa. Take that to the bank
Nice observation, but wacha kudanganya watu. Please note the NHIF deduction of Kshs.1,700.00 and try to relate it with the new NHIF deduction rates. It becomes obvious that the guy earns way over Kshs.100,000.00 hence the NHIF deduction of 1,700.00. Unless you try to convince us how the NHIF deduction of 1,700.00 is attributable to the one-off payment of 200k you are quoting, to the best of my knowledge, NHIF deductions will never be affected by one-off payment. Ni kama kusema ile mwezi mtu analipwa acting or leave allowance, NHIF deduction zinapanda then zinashuka the following month akipata mshahara ya kawaida.
 

panktcha

Village Elder
#20
Gross Pay = 141,642.50

Contribution Benefits = 1,261.55 + 200 + 992.95 = 2,454.50

Taxable Pay = 139,188.00

PAYE Before Relief = 36,850.00

Relief = 1,162.00

PAYE after Relief = 35,688.00

Net Pay = 105,954.5

Deductions = 4454.50

Net Pay after Deductions = 101,500 (EFT into Coop)


I couldn't arrive at 105,221.00


There must be a benefit which you are receiving e.g. welfare fund, telephone or car for which some tax is being charged. Or the employer is paying some tax for you on your behalf (e.g. due to travel per diems etc) and tax on tax is being charged.

Either way, ask your HR/Accounts office to clarify. Maybe kuna mtu anachota a few shillings from everyone's salo...
 
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