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Overview
Kenyan Shilling (KES)
CURRENCY
Nairobi
CAPITAL
monthly
PAYROLL FRECUENCY
PUBLIC HOLIDAYS
0 to 6
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Kenya
Employer
Company Payroll Contributions
** National Industry Training Rate (NITA): KES 50 per employee.
0% - 6%
National Social Security Fund (NSSF) up to KES 200 monthly
0% - 6%
Total Employment Cost
Employee
Worker Payroll Contributions
** National Hospital Insurance Fund (NHIF): KES 150 – KES 1700
0%- 6%
National Social Security Fund (NSSF) up to KES 200 monthly
0% - 6%
Total Employee Cost
Employee Income Tax in Kenya
Worker Income Taxes
10%
Up to KES 24,000 per month or KES 288,000 per year
25%
Following KES 8333 monthly or KES 100000 annually
30%
Income greater than KES 32,333 per month or KES 388,000 per year
Minimum Wage in Kenya
General
With payroll outsourcing services you can efficiently pay the minimum wage of employees in Kenya. However, the minimum wage in the country varies depending on the company and the location. For example, the salary of cleaning workers is set at KES 13,527.90.
In contrast, the salary of cashier workers or drivers of heavy commercial cargo is set at KES 30,627.45.
$101 Minimum Wage per month
Payroll Contributions in Kenya
Payroll Cycle
It is generally paid monthly and is paid by employers on the last day of the month. On the other hand, casual workers receive payment at the end of the workday. Also, with payroll outsourcing, you can manage worker pay cycles on time.
13th Salary
In Kenya, there are no rules requiring companies to provide payments for the 13th month.
Employee Benefit in Kenya
There are no legal requirements in employment laws for the provision of other benefits.
Visa and work permit in Kenya
In Kenya, employers seeking foreign employees have several options through immigration into the country. Therefore, foreign citizens entering for business reasons must apply for a work visa. Likewise, the immigration officers determine the length of stay at the port of entry.
In general, the time granted has a maximum of 30 days and can be extended for another 30 days. Thus, an Employer of Record in Kenya can help you with the recruitment and procedures for foreign staff that your company requests. On the other hand, travelers can request a special pass for a maximum of 90 days.
Besides, the Kenya Immigration Department headquarters handle special pass applications. Likewise, the solicitant must request it before traveling to the country. Also, suitable work permits (Class D) may be issued for professional workers and experienced skilled technicians.
Likewise, the long-term permit requires a local, legal company to sponsor it. Furthermore, Class D permits have a duration of 1 to 2 years and can be renewed for periods of the same term.
VAT in Kenya
Kenya have a standard VAT rate of 16.00%
Working Hours in Kenya
General
Employees in Kenya have a work week that cannot exceed 56 hours.
Overtime
In general, workers can only work 4 hours of overtime per day. Likewise, overtime is paid at 150% of the minimum wage. In this case, a Professional Employment Organization can help you with the control and administration of the time done by the workers.
Also, employers must pay for the night hours worked by workers. Likewise, the payment is granted for working between 10 pm and 6 am. Thus, the amount of this payment averages 1.2 times the minimum wage per hour and can be replaced by extra free hours.
Working Week
Monday to Friday.
Employee Termination in Kenya
Termination Process
An employer can terminate a permanent employment contract of a worker for reasons of commercial, personal, or labor misconduct. Besides, the employer must prepare a written notice for the end of the contract. Also, as it is only misconduct, the employer must give the worker a warning so that he can explain the actions.
On the other hand, when terminating a contract, the employer must be in charge of making the corresponding final payments on the completion date. Similarly, when workers worked for more than 1 month, they can receive an employment certificate. Additionally, a PEO can manage termination payments for employment contracts.
Notice Period
In Kenya, the notice periods are given as follows:
- Workers who go through a probationary period may receive a notice period of around 7 days.
- Permanent employees with monthly or longer salaries will receive a notice period of around 28 days.
Severance Pay
An EOR service can assist you with the supervision and administration of worker licenses in Kenya. Generally, the amount that an employer must pay for compensation is adjusted depending on the cause of the end of the contract. Also, the labor time factor in the company influences the amount to be delivered.
Therefore, the delivery of the indemnity can be paid as follows:
- From 6 months to 2 years, workers receive 1 month of minimum wage.
- For 2 to 5 years of service, workers receive 2 months of minimum wage.
- From 5 to 10 years, workers will receive 3 months of minimum wage.
- For more than 10 years of work, workers will receive 4 months of minimum wage.
Probation Period
Generally, trial periods do not exceed 6 months. Likewise, when dismissing a worker during this time, employers must give a notice period of 7 days. Otherwise, you will have to make a direct payment at the time of dismissal. In addition, the worker will receive a payment not greater than 70% of the salary received by an employee in the same position.
Also, the employer must pay the salary of a probationary worker in the same way as the base salary of the minimum position. On the other hand, you can use PEO services to manage the payments of the employees who work on trial periods.
Employee Leaves in Kenya
Paid Time Offs
In general, after 1 year of employment, workers can receive a minimum of 21 days of annual vacation. Also, with the implementation of recent regulations, new workers in the company can receive annual vacations after 7 months from the start of the contract.
On the other hand, employees can agree on the days of vacation right to divide it into parts and take it at different intervals. However, workers can only receive 10 consecutive days of leave at least every 15 days of vacation leave.
Also, an Employer of Record in Kenya can help you with the administration of annual leave to employees.
Public Holidays
There are national holidays throughout the year.
Vacation Holidays
There are 21 vacation holidays throughout the year.
Sick Days
Workers who have at least 2 months of service may have 7 days of sick leave. In addition, the pay for the days is granted by the employer at 100% of the minimum wage. Likewise, after the minimum license period, the payment is granted at 50% of the basic salary per year for 7 more days.
On the other hand, workers must present a medical certificate to apply for sick leave. Also, you can hire HR and payroll outsourcing services to improve sick leave administration.
Paternity Leave
Usually, working parents can receive 2 weeks of paid paternity leave.
Paternal Leave
As it is an adoption, married employees apply the same policies applied in paternity or maternity leave. In the same way, workers must request leave with a period of 14 days in advance. An Employer of record in Kenya can assist you in the management of parental leave granted to employees.
Other Leave
There are no extra licenses in Kenya
Maternity Leave in Kenya
Pregnant employees are entitled to a 3-month maternity leave with a pay of 100% of the minimum wage. However, workers will only have the right to leave upon presenting a medical certificate proving the pregnancy.
Likewise, a worker must inform the employer of the decision to take leave with a period of 7 days in advance. In the same way, an employee can request leave for the adoption of a child but must do so 14 days in advance. Thus, you can improve the supervision and delivery of maternity leave with an Employer of Record in Kenya.
There are 90 leave throughout the year.