Gordon Gekko wrote: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.
Legal Notice No. 64 of 10th June 2011:
...........
1. This Order may be cited as the Regulation of Wages (General) (Amendment) Order, 2011, and shall be deemed to have come into operation on the 1st May, 2011.
2. The Regulation of Wages (General) Order is amended by deleting the Schedule thereto and inserting the following new Schedule: Sub. Leg.
SCHEDULE
1. BASIC MINIMUM MONTHLY WAGES (
EXCLUSIVE OF HOUSING ALLOWANCE)