PAYE changes: Scrapping Ksh.2,400 relief raises questions over employees’ take-home pay
Election
Originally published by Citizen Digital — Read the original article →
President William Ruto’s proposal to exempt workers earning up to Ksh.32,333 a month from Pay As You Earn (PAYE) tax will also abolish the Ksh.2,400 monthly personal relief currently available to employees across income levels.
The proposal, announced during Mashujaa Day celebrations on October 20, seeks to increase the amount of income taxed at zero per cent while removing the existing personal relief, which reduces the income tax payable by eligible employees.
Under the proposed arrangement, the first Ksh.32,333 of monthly income would be taxed at zero per cent. The Ksh.2,400 personal relief would be scrapped for eligible employees regardless of whether they earn below or above that threshold.
