True cost to employ
Gross plus employer NSSF and levy
A new employee payroll checklist should establish who is being paid, what they are owed and which payroll rules apply before the first salary is approved. Missing information is easier to resolve before the cut-off than after a payment has gone to the wrong account or a contribution has been filed under the wrong identifier.
Use the employer cost calculator to check the budget for the agreed gross salary. This checklist covers onboarding one employee; the employer payroll guide covers the continuing process.
Confirm identity and the employment terms
- Employee name and identity details matching the supporting documents.
- KRA PIN and the employee's existing NSSF and SHA registration details.
- Signed employment terms, start date and payroll period.
- Basic salary, cash allowances, benefits and whether the quoted figure is gross or net.
- Approved salary-payment details and a reliable private contact channel.
Check identifiers directly against the employee's records rather than guessing from a previous payroll entry. Do not create a duplicate membership simply because someone has changed employers. Resolve mismatches through the relevant agency's official service.
Ask about tax treatment and supported claims
Establish tax residence and whether there is concurrent employment or another employer paying in the same period. These facts can affect the calculation and prevent relief being duplicated. Ask for relevant previous-employment records where needed to reconcile the year, without assuming a past payslip is a template for the new salary.
KRA's employer notice requires relevant deductions, reliefs and exemptions to be applied, with supporting documentation where required. Use the tax-relief documents checklist to collect the evidence, including validity dates for an exemption certificate. Do not treat an unsupported statement that an expense is deductible as approval.
Resolve the first partial month explicitly
If someone joins part-way through a month, record the contractual or applicable basis for calculating that month's earnings. Do not silently alternate between calendar days and working days. Have the employee's start date and approved amount checked before deductions are calculated.
For example, if an approved employment arrangement produces KES 30,000 gross for the first period and KES 60,000 for a full later month, keep both figures in the record. Do not enter KES 60,000 into the first run simply because it is the standard monthly salary. This example does not prescribe a universal proration formula.
Check deductions and payment details independently
Identify the treatment of benefits, pension contributions, loan repayments and other authorised deductions individually. A deduction reducing the bank payment is not automatically an allowable deduction for PAYE. Confirm any HELB repayment instruction through the appropriate employer process rather than inventing a percentage.
Use a second-person check for bank details and any last-minute change. Restrict access to payroll documents and use the employer's approved secure channel; a general team chat is not a suitable place for identity or financial records.
Review the first payslip with the employee
- Match the pay period, start date and gross earnings to the approved terms.
- Check deductions, benefits and reliefs against the supporting records.
- Reconcile gross cash pay less deductions to the bank amount.
- Explain how the employee can check contribution credits after remittance.
- Document and resolve any correction rather than overwriting the original result.
Share the payslip reading guide and, for a move between jobs, the changing-employer PAYE checklist. Mark onboarding complete only when the employee is included in the appropriate payroll and statutory records.
Sources and review date
Published and reviewed on 28 October 2026. Follow the official rules and service instructions for the relevant payroll period.