July salaries will come with some goodies for all TSC teachers. Teachers will find a basic salary increment of 7% in their July payslips.
This is after President William Ruto ordered SRC to pay salary increment of between 7% to 10% to all public servants (teachers and civil servants) beginning July 1st.
However the salaries will face a number of deductions including new ones which will be introduced this month of July.
MANDATORY DEDUCTIONS
1. Pay As You Earn (30%)
Teachers from lowest job group B5 to highest in D5 will face a deduction of 30% of their gross pay going towards tax commonly referred to as PAYE.
2. Provident Fund (7.5%)
Teachers aged 45 years and below will face a mandatory deduction of 7.5% of their basic salary going towards the Public Service Superannuation Scheme (PSSS).
This is a defined contribution pension arrangement where the employee and the employer contribute to fund the scheme to benefit the employees.
You can dial USSD Code *378# and verify account by entering their ID number and creating a password.
You will then be able to check provident fund contribution and balance, the beneficiaries and even update there beneficiaries.
3. Knut, Kuppet, Kusnet and Kewota deductions
Primary school teachers will be deducted 2% of their basic pay towards Knut. Post primary school teachers (Secondary and tertiary) will face 1.8% of basic pay deduction towards Kuppet.
Teachers teaching in special schools will meet 1.45% of basic pay deduction towards Kusnet. Female teachers will lose sh. 200/- to be channeled to Kewota.
4. Housing fund deduction (1.5%)
Teachers will meet a new deduction on there July payslips. This House Levy will be equivalent to 1.5% of gross pay.
5. Loan and Premium deductions
Teachers with loans from Banks, Saccos or even Microfinances will find their payslips with deductions going towards servicing the loans.
Some teachers have also invested in insurance companies by taking insurance policies, they will lose the agreed amount to be paid to insurance firms as premium for the policy taken.
7. Expensive Personal Loans
The Central Bank of Kenya (CBK) has raised the lending rate to commercial banks from 9.5% to 10.5%.
This means teachers will take and pay loans with higher interest rates.
Higher interest rates mean teachers will spend more to service their loans. Besides bank borrowing, the higher rates will also hit teachers in the form of more expensive goods on the shelves. This is the highest lending rate by CBK since 2016.
PROPOSED DEDUCTIONS
6. NHIF deduction (2.75%)
President William Ruto has on June 26, 2023, made proposals for the National Hospital Insurance Fund (NHIF) to enhance equality in payment.
In the proposal announced by the Head of State, Kenyans will pay the national insurer 2.75 per cent of their gross salary.
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Teachers are suffering.. Why don’t you just take all the salary instead rather than deduction…
30 percentageof gross pay is too much
30% is too much.
Deductions from gross is a mistake allowances are not supposed to be deducted