Employers will be compelled to double the amount of training levy they remit to the industrial training agency if MPs approves a bill that seeks to review the existing 12 year-old law.
If MPs approve the Industrial Training (Amendment) Bill, 2019 all employers will be required to pay a training levy of Sh100 every month per employee.
Currently, employers pay Sh50 per month per employee to the National Industrial Training Authority (Nita) as training levy. The bill seeks to review the Industrial Training Act, 2007.
The bill, sponsored by Kiambu Town MP Jude Njomo, compels the employers to remit the levy to the Kenya Revenue Authority (KRA) which will be responsible for the assessment and collection of training levies from employers.
“An employer shall pay the training levy to the Commissioner-General at the time when an employee’s salary is payable and shall be remitted to the Commissioner-General not later than the fifth day of the month following the month in which the levy becomes due,” the bill states.
It stipulates that the training levy shall be charged every month at the rate of Sh100.
“The training levy shall not be deducted from emoluments of an employee.” It empowers the KRA to apply provisions of the Income Tax Act in respect of the payment and recovery of the levies and penalties.