Your pay rise after deductions
Compare current and proposed take-home pay
A KES 10,000 pay rise does not mean KES 10,000 more in your bank account. To find the usable increase, calculate your old and new net salaries using the same assumptions, then subtract. The answer depends on your salary level, contribution limits and personal tax position.
Use the Kenya pay rise calculator for the comparison. The salary breakdown guide explains the deductions behind each result.
Compare two complete payslips
Work out gross salary, employee contributions, taxable income, PAYE and net pay twice. Do not subtract your current average deduction percentage from the proposed rise: the extra income can face a different marginal rate, while some contributions stop increasing at a ceiling.
Salary examples assume a resident employee with one job, a full month of regular cash salary, pensionable pay equal to gross pay, standard personal relief and February 2026 NSSF limits. They exclude extra pension, mortgage deductions, insurance relief, disability exemption, taxable benefits and personal repayments. Payroll rounding may differ slightly.
Example: KES 100,000 rising to KES 110,000
| Monthly item | Before | After |
|---|---|---|
| Gross salary | KES 100,000 | KES 110,000 |
| Employee NSSF | KES 6,000 | KES 6,480 |
| SHIF | KES 2,750 | KES 3,025 |
| Housing Levy | KES 1,500 | KES 1,650 |
| PAYE | KES 19,308.35 | KES 22,036.85 |
| Net salary | KES 70,441.65 | KES 76,808.15 |
The extra cash is KES 6,366.50 a month: 63.665% of the KES 10,000 gross increase. Over 12 full months at unchanged rules and circumstances, that is KES 76,398. A rise starting part-way through the year does not produce 12 months of extra cash immediately.
Why the NSSF ceiling changes the result
NSSF's Year 4 notice sets the upper earnings limit at KES 108,000. In the example, only the first KES 8,000 of the increase adds employee NSSF. A rise entirely above that ceiling adds no further mandatory employee NSSF under these assumptions.
For example, KES 120,000 rising to KES 130,000 gives net pay of KES 83,510.65 and KES 90,213.15: a KES 6,702.50 increase. This differs from the first example even though both gross increases are KES 10,000. See the NSSF contribution guide for the tiers.
A higher tax band does not re-tax all your salary
Kenya uses progressive bands. If an increase crosses a band boundary, only the relevant portion enters the higher band; the entire salary does not suddenly face that rate. Qualifying deductions also affect taxable pay before PAYE is calculated.
Keep three percentages separate: the gross percentage rise, the net percentage rise, and the share of extra gross cash retained. They have different denominators. There is no universal rule that the percentage increase in net salary must always be lower than the percentage increase in gross salary.
Check the first revised payslip
- Confirm the effective date and whether the rise includes existing allowances.
- Separate recurring salary from a one-off payment.
- Check personal deductions or benefit changes separately.
- Reconcile the new net figure with the bank deposit.
A backdated increase needs the salary arrears checklist. If the employer quotes a package instead of cash salary, first use the gross versus net salary guide.
Sources and review date
Published and reviewed on 30 October 2026. Examples use October 2026 rules, not projected future rates.