With the introduction of housing levy charged at 1.5 percent of the gross salary on top of the Social Health Insurance Fund (SHIF) at a rate of 2.75 percent, the share of deductions on the payslip has seen disposable income shrink by a big margin.
For instance, with the housing levy and now SHIF, those employees whose salaries ranged between Sh100,000 to Sh1 million now part with Sh27,665 to Sh351,282 from Sh25,115 to Sh310,482.