Salary Deductions Pass The two thirds Rule.
Salary deductions over civil servants pass the two thirds legal Rule.
The salaried workers over this month have experienced the pain over their payslip.
Workers who had pre existing loans have seen their take home pay shrink to the minimal legal recommended level due to increased taxes by the government .
Workers who earn 50000 get a tax of 20.5% translating to 10200 while those who earn 100000 get a tax of 26.3% which is 26300 shillings from their payslip.
Those inside the tax bracket of 200000 have received a tax of 57800 that’s the 28.9% of their salary .
Apart from the statutory taxes the employees have loans in which they repay every month .
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This has seen many Workers take home a salary that is less than their 2/3 of the basic salary.
The employment act of Kenya section 11(1) permits the employee to deduct any amount from the employee’s wages as a contribution to fund a program in which , the employee has consented to support and has been approved by the Commission of labour.
Statutory deductions
The deductions that increased include
Pay as you earn that works on employees with a salary of 24000 and above.
Taxes over salaried employees to replace foreign debts.
The national health insurance fund , national social security fund and the Housing levy project induced by the government two months ago.
The Government is bullish on several policy changes targeting the payslips despite the high cost of living.
This leaves many Kenyans with disporsible income .
The Kenyans who are the target group on the middle group eaners slide back into poverty .
Salaried kenyan woes over deductions.
The Government of Kenya entranches the invasion of salaried workers payslip .
The middle class workers face alot of challenges and deduction in which the government wants to impose taxes and change the model of borrowing into taxes.
The high cost of living has rendered many Kenyans helpless with the high cost of commodities.
The president says that the taxes will lift up the life of “hustlers ” which in not the case.
Salaried workers continue to feel the pinch of increased taxes and increase in prices of basic commodities.
Salary Deductions Pass The two thirds.