List of Deductions Teachers Should Expect in July Payslip
All TSC teachers will receive bonuses with their July salary. In their July payslips, teachers will see a basic salary increase of 7%.
President William Ruto had already directed SRC to start paying wage increases of 7% to 10% to all public employees (teachers and government staff) on July 1.
However, there will be several deductions made from salaries, including some that will be implemented this month of July.
REQUIRED DEDUCTIONS
1. Pay As You Earn
From the lowest job category B5 to the highest in D5, teachers will have 30% of their gross income withheld for PAYE taxes.
2. Provident Fund
Teachers who are 45 years of age or younger must contribute 7.5% of their base pay to the Public Service Superannuation Scheme (PSSS).
In a defined contribution pension plan, both the employer and the employee make financial contributions to the plan’s funding on their behalf.
By entering their ID number and setting a password, you can call the USSD code *378# to validate an account.
Then, you’ll be able to monitor your provident fund contribution and balance, as well as the beneficiaries and even any updates.
3. Deductions made by Knut, Kuppet, Kusnet, and Kewota
Teachers in elementary schools will have 2% of their base income withheld for Knut. Secondary and tertiary school teachers will have 1.8% of their basic pay withheld for Kuppet.
Special education teachers must contribute 1.45% of their basic pay as a contribution to Kusnet. Female educators will forfeit sh. 200, which will go to Kewota.
4. Housing Fund
On their July paychecks, teachers will notice a new deduction. 1.5% of gross compensation will be the equivalent of this House Levy.
List of Deductions Teachers Should Expect in July Payslip
5. Deductions for loans and premiums
Teachers who have loans from banks, saccos, or even microloans may notice deductions on their payslips for repaying the loans.
Some instructors have invested in insurance businesses by purchasing insurance policies, but they risk losing the money they promised to pay as premium to the insurance company for the policies they purchased.
7. Exorbitant Personal Loan Rates
The lending rate to commercial banks has increased from 9.5% to 10.5% by the Central Bank of Kenya (CBK).
This implies that educators will borrow money at higher interest rates and repay it.
Teachers will have to pay extra to repay their loans due to higher interest rates. Along with bank borrowing, the rising rates will cost teachers more money by making products on the shelves more expensive. Since 2016, this is CBK’s highest lending rate.
PROPOSED DIMINISHMENTS
6. Deduction for NHIF (2.75%)
On June 26, 2023, President William Ruto proposed changes to the National Hospital Insurance Fund (NHIF) that will improve pay equity.
According to the Head of State’s proposal, Kenyans will contribute 2.75 percent of their gross income to the national insurer.
