For Sport wrote:Toxicity wrote:
Is this acceptable?
BASIC SALARY : 7000
DEDUCTIONS
NHIF: 320
NSSF: 200
ACCOMMODATION: 3000
FOOD: 2000
NET PAY : 1480
Wrong.
If you do not provide housing, you add 15% as a housing allowance.
Actually rent income to the worker is deemed to be 15% of basic where the employer HAS provided accommodation. If not provided, it is whatever amount the employer deems fit.
The 15% is for purposes of computing tax, for this case our mboch is below the minimum threshold.
Where food is provided, there is also a percentage of basic which I cant remember. Where both accommodation and meals are provided, this benefit becomes 20%. However, if this benefit does not exceed ksh 3,000, it is not taxable.