Final Dues & Terminal Benefits Calculator Kenya
What does the business owe someone who is leaving?
Counted as a full working day.
Regular monthly allowances only.
Notice worked before the last day.
From earlier leave years.
Members don't get statutory service pay (s.35(6)). Most formal employees are in NSSF.
Contract, leave year and pay basis
Leave at 0 to use the legal minimum. Used only if longer.
At least 21.
Courts use ÷ 30 for severance and notice.
The Act doesn't fix a rate. 15 days is court and CBA practice.
Gratuity, other pay and recoveries
As the contract sets it.
Use the gratuity calculator to test the exemption.
Agreed payment for ending the contract. Taxable.
Overtime, bonus, commission.
Not taxed.
Salary advance, loan balance, unreturned property.
Tax method and payment date
The month paid sets the NSSF rates.
Employers usually withhold everything in the last month. The Income Tax Act spreads compensation over later years.
Final dues
5 yrs 9 mths 25 days · paid 2026-10- Completed years
- 5
- Leave balance
- 15.75 days
- Notice required
- 28 days
No service pay: Not payable to members of NSSF or a pension, provident or CBA gratuity scheme (s.35(6)). Where NSSF was deducted but never remitted, courts have sometimes awarded it anyway.
What's owed and when
- Give a certificate of service showing the employer, employee, start and end dates and nature of work (s.51). Refusing is an offence.
- Any claim must be brought within 3 years (s.89).
Leave year from 4 Jan 2026: 9 completed months, 15.75 days earned. Day rate 2,000.00.
How it's worked out
- Salary to the last day: monthly basic plus allowances × days worked in the last month ÷ days in that month (or ÷ 30, or working days).
- Leave pay: days carried forward + 1¾ days for each completed month in the current leave year − days taken, × a day's pay. Under 2 completed months in the leave year, the Act gives no pro-rata leave (s.28(1)(b)).
- Pay in lieu of notice: for the unserved part of the notice. 28 days (one month's pay) for monthly-paid staff, 7 days on probation, one month on redundancy, or longer if the contract says so.
- Severance (redundancy only): 15 days' basic pay × completed years of service. A day's pay is monthly pay ÷ 30.
- Service pay: 15 days' basic pay × completed years, only for monthly-paid open-ended staff who aren't in NSSF or a pension scheme.
- Deductions: NSSF, SHIF and the housing levy are charged on the salary only. Terminal lump sums are outside those bases.
- PAYE: the shared payroll engine taxes salary plus all taxable lump sums in the payment month. Lump sums are passed to it as taxed-only amounts, so PAYE on terminal pay = PAYE(salary + lump sums) − PAYE(salary).
- Spread option (estimate): severance and compensation are split over 36 months (no contract clause), the unexpired term (fixed term), or monthly-pay chunks (with a clause), and each month's share is taxed on top of other income (Income Tax Act s.5(2)(c)).
- Net payable = gross dues − NSSF, SHIF, housing levy and PAYE − recoveries. It never goes below zero.
What each reason pays by default
| Reason | Notice pay | Severance | Service pay |
|---|---|---|---|
| Terminated with notice | If not served | No | If eligible |
| Resignation | Only if the employer waived notice | No | If eligible |
| Redundancy | At least 1 month | 15 days a year | Optional |
| Probation | 7 days | No | No |
| Summary dismissal, contract expiry, death, retirement | No | No | No |
Questions people ask
What are final dues in Kenya?
Everything owed when employment ends: salary up to the last day, any accrued annual leave, pay in lieu of notice if notice wasn't served, severance on redundancy, service pay where it applies, and any contractual gratuity. Pay is due even after summary dismissal (Employment Act s.18(4)).
Are final dues taxed?
Yes. Salary, leave pay, notice pay, severance and compensation are all taxable under the Income Tax Act s.5(2). The housing levy and SHIF don't apply to terminal lump sums like severance or gratuity (KRA housing levy notice; Stubbs v Fourth Generation Capital, 2025).
Am I entitled to service pay?
Only if you were on a monthly-paid open-ended contract and were not a member of NSSF, a registered pension or provident fund, or a CBA gratuity scheme (s.35(6)). Most formal employees are in NSSF, so they don't get statutory service pay.
How long does my employer have to give a certificate of service?
The Act requires one on termination for anyone employed 4 weeks or more. It must show the employer, your name, start and end dates and the nature of your work. Refusing is an offence with a fine of up to KES 100,000 (s.51).
Sources
Rates last checked 13 Sep 2026. Estimates only, not tax or legal advice.