How Paye Is Calculated in Kenya?
Pay-as-You-Earn(Paye) Is the Tax Charged on Income Earned by Employees in Kenya. the Formula for Calculating This Income Tax in Kenya Uses the Following Simple...
Pay-As-You-Earn(PAYE) is the tax charged on income earned by employees in Kenya. The formula for calculating this income tax in Kenya uses the following simple steps: ... Gross Income = Basic salary + allowances + commissions. Step 2.
How is PAYE pay calculated?
Example
- Year-to-date regular income = R10,000.
- Annual equivalent = R10,000 x 12/1 = R120,000.
- Tax calculated on R120,000 as per tax tables = R7,533.
- PAYE payable on regular income = R7,533 x 1/12 = R627.75.
Must Read
Is PAYE calculated on gross or net salary?
When calculating PAYE, start by computing the total annual or gross salary/income inclusive of benefits before any deductions.
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