A uniform allowance is a financial benefit provided by employers to cover the costs associated with purchasing, maintaining, or cleaning uniforms required for work. This allowance ensures that employees can adhere to specific dress codes or uniform standards without having to bear the full cost themselves. It is common in professions where wearing a uniform […]
In Kenya, a transport allowance is a financial benefit provided by employers to help employees cover commuting and transportation costs to and from their workplace. Like the housing allowance, transport allowances are commonly included in the overall compensation packages for both public and private sector employees. The allowance is designed to offset the costs of
In Kenya, a housing allowance is a benefit provided primarily by employers to help employees cover their housing costs. It is a common component of the total compensation package for employees, especially in government jobs, large corporations, and certain sectors like education, healthcare, and finance. Here are some key points about housing allowances in Kenya:
Hardship pay, also known as hardship allowance or hardship compensation, is a financial benefit provided to employees who work in challenging or adverse conditions. This pay is intended to compensate for the difficulties or risks associated with certain job environments or locations. Here’s a comprehensive overview of hardship pay: Purpose and Definition Hardship pay is
An Emergency Hardship Loan is a type of short-term loan designed to provide financial relief to individuals facing sudden and unexpected financial difficulties. These loans are typically meant to help cover urgent expenses caused by emergencies, such as medical bills, home repairs, natural disasters, or other unforeseen events that create financial hardship. Key Features of
Capital Gains Tax (CGT) in Kenya is a tax levied on the profit realized from the sale of property or an investment. Here are the key points regarding Capital Gains Tax in Kenya: In summary, Capital Gains Tax in Kenya is a tax on the profit from the sale of capital assets, currently levied at
In Kenya, a Tax Compliance Certificate (TCC) is an official document issued by the Kenya Revenue Authority (KRA) that certifies that an individual or business is compliant with their tax obligations. Here are the key details about a TCC in Kenya: In summary, a Tax Compliance Certificate in Kenya is an essential document that confirms
PAYE (Pay As You Earn) is a system for collecting income tax from employees’ salaries and wages. The employer deducts the tax directly from the employee’s salary or wage before paying them and then remits this tax to the tax authorities. Here are the key details about PAYE: In summary, PAYE is a system where
Rental income tax is a tax imposed on income earned from renting out property. It applies to landlords or property owners who receive rental income from tenants. The tax is usually calculated based on the rental income earned during a specific period, after deducting allowable expenses related to the rental property. The tax rate and
Overview of Turnover Tax (TOT) Turnover Tax (TOT) is a tax levied on the gross sales/turnover of small businesses in Kenya. It was reintroduced by the Kenyan government to simplify the tax compliance process for small businesses and to broaden the tax base. The TOT regime is designed to replace the normal income tax for
A payroll is the process by which employers pay their employees for their work. It involves several key components and steps to ensure that employees receive their correct earnings, and that all legal and statutory obligations are met. Here’s a more detailed explanation: Key Components of Payroll Payroll Process
T-Pay in Kenya is an online platform provided by the Teachers Service Commission (TSC) to facilitate various services for teachers, including viewing and downloading payslips. This system simplifies the management of financial records for teachers and ensures that they can access necessary documents promptly and securely. Here’s a detailed overview of T-Pay and how to
“Base salary,” also known as “base pay,” is the fixed amount of money paid to an employee by their employer in exchange for their work. This amount does not include additional compensation such as bonuses, overtime pay, benefits, or any other perks or allowances. The base salary is usually expressed as an annual figure, although
The term “basic monthly salary” refers to the fixed amount of money that an employee receives from their employer each month before any additional earnings or deductions. This salary does not include bonuses, overtime pay, allowances, or other types of variable compensation. The basic monthly salary is the foundational component of an employee’s total compensation
In Kenya, Job Group K in the county governments has a basic salary that typically starts at KSh 38,270 per month. This figure can vary slightly depending on the specific county and any incremental raises over the years of service. Allowances for Job Group K Other Benefits These figures are standardized across the country, aligning
The Salaries and Remuneration Commission (SRC) is an independent constitutional commission established under Article 230 of the Constitution of Kenya, 2010. The SRC’s primary mandate is to set and review the salaries and benefits of all public officers, ensuring that remuneration is fair, equitable, and sustainable. The commission plays a critical role in maintaining a
Definition and Overview Service Gratuity is a lump sum payment made to an employee upon the termination of their employment, typically due to retirement, resignation, or redundancy. It is a form of financial reward for the services rendered by the employee during their tenure with the organization. Service gratuity is different from a pension, as
Pay As You Earn (PAYE) is a method of income tax collection in which an employer deducts tax from an employee’s wages or salary at the time it is paid and remits it directly to the tax authorities. This system ensures that taxes are collected regularly and systematically as the employee earns income, rather than
A scale of salary, often referred to as a salary scale or pay scale, is a structured system that determines the range of pay for a specific job or position within an organization. It is typically based on factors such as job role, experience, education, skills, and sometimes geographical location. Salary scales ensure that employees
Gross salary refers to the total amount of money an employee earns before any deductions are made. It includes basic salary, allowances, bonuses, and any other earnings. Gross salary does not account for taxes, social security, retirement contributions, or other deductions that might reduce the actual amount of money the employee takes home (net salary).
Current salary refers to the amount of money an employee is currently earning in their present job. It is typically used in the context of job applications, salary negotiations, and performance reviews. The current salary can encompass various components, including the basic salary, allowances, bonuses, and other financial benefits that an employee receives on a
Pay As You Earn (PAYE) is a method of tax collection on income earned by employees in Kenya. Administered by the Kenya Revenue Authority (KRA), PAYE is a key component of the country’s taxation system, ensuring that income tax is deducted from an employee’s salary or wages by their employer and remitted directly to the
The Integrated Payroll and Personnel Database (IPPD) is a system used by the Kenyan government to manage payroll and human resource information for public sector employees. The IPPD system integrates various HR functions to streamline and enhance the efficiency of managing personnel data and payroll processes. Here are the key features and functions of the
The Government Human Resource Information System (GHRIS) in Kenya is an online platform designed to streamline and manage human resource processes within the Kenyan public sector. It serves as a comprehensive system for automating various HR functions, thereby enhancing efficiency, transparency, and accountability in the management of public service employees’ data. Key Features and Functions