Employer Cost of Employment Calculator Kenya
How much does this hire really cost the business each month?
Monthly, before deductions.
House, transport and other taxable cash, per month.
On this same pay.
Pension, benefits and other costs
Sets the NSSF limits.
Company car, housing. Taxed on the employee.
Leave empty to use the taxable value.
Per month, to a registered scheme.
Per employee, per month.
Per employee, per month.
Meals, uniforms, staff welfare, per employee per month.
KES 50 per employee per month.
Cost of one employee
per month · 2026 rates- On top of cash pay
- 7.55%
- Employee takes home
- 70,441.65
- Annual cost
- 1,290,600.00
- Salary 93.0%
- Employer statutory 7.0%
Where the money goes each month
| Paid to | KES |
|---|---|
| Employee's take-home pay | 70,441.65 |
| KRA: PAYE and housing levy (both shares) | 22,308.35 |
| SHA: SHIF | 2,750.00 |
| NSSF (both shares) | 12,000.00 |
| NITA levy | 50.00 |
| Total | 107,550.00 |
Remitted by the employer each month
| Remittance | One employee |
|---|---|
| PAYE (KRA) | 19,308.35 |
| Housing levy (KRA) | 3,000.00 |
| SHIF (SHA) | 2,750.00 |
| NSSF | 12,000.00 |
| NITA | 50.00 |
| Total | 37,108.35 |
How it's worked out
- Start with cash pay: basic salary plus allowances.
- Add employer NSSF: the same as the employee's, 6% of pay up to KES 108,000, so at most KES 6,480.
- Add employer housing levy: 1.5% of gross pay, with no cap.
- Add the NITA levy: KES 50 per employee per month.
- Add what the business chooses to pay: employer pension, the actual cost of non-cash benefits, medical cover, WIBA and other costs.
- Multiply by 12 for the annual cost and by the number of employees for the team cost.
Employer statutory costs in 2026
| Cost | Rate | Limit |
|---|---|---|
| NSSF (employer share) | 6% of pensionable pay | KES 6,480 a month from February 2026 |
| Affordable Housing Levy (employer share) | 1.5% of gross pay | No cap |
| NITA levy | KES 50 per employee | Flat |
| SHIF | Employee only | No employer share |
Questions people ask
What statutory costs does a Kenyan employer pay on top of salary?
Three: employer NSSF, which matches the employee's 6% up to a maximum of KES 6,480 a month in 2026; the Affordable Housing Levy at 1.5% of gross pay; and the NITA levy of KES 50 per employee per month.
Do employers pay SHIF?
No. SHIF is 2.75% deducted from the employee only, with no employer match. The employer's job is to deduct it and remit it to the Social Health Authority.
Is PAYE an employer cost?
No. PAYE is withheld from the employee's gross salary. The employer remits it to KRA but does not pay it on top, so it is already inside the salary figure.
Is an employer pension contribution taxable to the employee?
Contributions to a registered scheme are not taxed on the employee as long as total pension contributions, including NSSF, stay within KES 30,000 a month. Anything above that may be a taxable benefit. This calculator warns you but does not add that tax.
Sources
Rates last checked 13 Sep 2026. Estimates only, not tax or legal advice.