Last updated: 25 June 2026
SHA/SHIF deductions are part of monthly payroll processing in Kenya. The contribution affects employee net pay, so employers should make sure it is calculated consistently and shown clearly on payslips.
How SHA is estimated
For payroll planning, SHA is commonly estimated at 2.75% of gross income, with a minimum contribution of KSh 300 where income exists. It is not capped in the same way some older payroll deductions were, so higher gross salaries can result in higher SHA deductions.
Example workflow
- Start with monthly gross salary.
- Multiply gross salary by 2.75%.
- If the result is below the minimum where income exists, apply the minimum contribution.
- Show the deduction clearly on the payslip.
- Reconcile the payroll schedule before monthly compliance submission.
Why SHA matters for SMEs
Small errors repeated across several employees can create reconciliation problems. SHA also affects PAYE estimates where the contribution is treated as an allowable deduction in the taxable pay workflow. That means a payroll system or spreadsheet should calculate SHA before final PAYE is reviewed.
What Reworked can help with
- Monthly payroll deduction checks
- SHA/SHIF schedule review
- Payslip preparation
- Employee master file support
- Payroll summary reports for management
Use the Reworked Net Pay Calculator for a quick estimate, then request monthly payroll support if you need the work handled consistently.
Disclaimer: This article is general guidance only. Confirm the final position through official portals or request professional payroll support.
Employer questions
SHA and SHIF payroll questions
These answers cover the salaried-employee contribution used in payroll planning.
How is the salaried SHA contribution calculated?
The Social Health Insurance regulations set the salaried contribution at 2.75% of gross salary.
Is there a minimum monthly SHA contribution?
The regulations provide a minimum contribution of KES 300 per month where income exists.
When should an employer remit SHA contributions?
Official SHA and Ministry of Health guidance requires employers to deduct and submit salaried employee contributions by the 9th day of each month.
Does the employer match the employee SHA contribution?
The employer deducts and remits the salaried employee contribution. It is not described as a matching employer contribution like NSSF or Affordable Housing Levy.