Home • Calculators • Employer Cost Calculator

Employer Cost Calculator Kenya

All Calculators PAYE Net → Gross Payslip Bonus Pay Rise Employer Cost Compare NSSF Mortgage P9 Form

Employee Compensation

Total Employer Outlay
KES 107,500
Overhead adds 7.5% onto base gross salary

Total Outlay Breakdown

Employee Gross Salary KES 100,000
Employer NSSF Contribution KES 6,000
Employer Housing Levy (1.5%) KES 1,500
Total Monthly Outlay KES 107,500

Employer statutory obligations in Kenya

Employers are legally obligated to match the following contributions for each employee:

  • NSSF Contribution: Employers must contribute an amount equal to the employee's deduction (6% of gross capped at KES 6,480).
  • Affordable Housing Levy: Employers must match the 1.5% deduction, making the total levy 3.0% of gross (1.5% employee, 1.5% employer).

What Is the True Cost of an Employee in Kenya? (2026)

The total employer cost of hiring an employee in Kenya includes the contracted gross salary plus mandatory statutory employer contributions: NSSF (matching employee contribution, up to KES 6,480/month under the 2026 Year 4 schedule) and the Affordable Housing Levy (1.5% of gross salary). Employers do not pay SHIF or PAYE on behalf of employees.

Component Paid By Rate / Amount
Gross Salary Employer 100%
Employer NSSF Employer Up to KES 6,480/mo (Year 4)
Affordable Housing Levy (employer) Employer 1.5% of gross
What does it cost to hire a KES 100,000 salary employee in Kenya?

For an employee earning KES 100,000/month gross, the total employer cost in 2026 is KES 107,500: gross salary (KES 100,000) + employer NSSF (KES 6,000: Tier I KES 540 + Tier II KES 5,460) + employer Housing Levy (KES 1,500). Total employer statutory overhead is 7.5%. Note that PAYE, employee NSSF, and SHIF are deducted from the employee's salary, not added to the employer's cost.

Does the employer pay SHIF in Kenya?

SHIF (Social Health Insurance Fund) is a 2.75% employee-only contribution deducted from gross salary. Employers do not make a matching SHIF contribution, unlike NSSF and Housing Levy where both parties contribute.

Related Kenya Payroll Calculators

PAYE Calculator Kenya → NSSF Calculator Kenya → Kenya Payslip Calculator → Kenya Tax Calculator Hub →

Disclaimer: These calculations are estimates based on 2026 KRA statutory rates and are provided for informational purposes only. CenterBoard is not affiliated with KRA or any government body.