In a move to fund President’s dream of affordable healthcare and affordable housing for all, employees are feeling the pinch as they dig deeper into their pockets. Before Ruto’s new taxes came into effect, a payslip for someone earning 90,000 looked quite different compared to now. Let’s break down the numbers.

  • Before Ruto’s New Taxes

Gross Pay: 90,000

Housing Levy: 0

NSSF: 300

Taxable Income: 89,700

Total Taxes: 21,693.35

  • NIF: 1,200
  • NHIF Relief: 180
  • Personal Relief: 2,400

Tax After Reliefs: 19,293.35

Take Home Pay: 69,386.65

After Ruto’s New Taxes

Photo: KES 90,000 Payslip

Gross Pay: 90,000

Housing Levy: 1,350

NSSF: 1,080

Taxable Income: 87,570

Total Taxes: 21,054.35

  • NIF: 2,475
  • NHIF Relief: 37.25
  • Personal Relief: 2,400

Tax After Reliefs: 18,654.35

Take Home Pay: 66,811.9

The new taxes introduced by Deputy President Ruto have taken a toll on the average earner. After these changes, the take-home pay for someone earning 90,000 is now 2,574.75 less. This means tighter budgets and fewer financial comforts.

As we navigate these new financial waters, it’s essential to consider the impact of these taxes on everyday lives. What will people have to give up or cut back on? Will the dream of affordable healthcare for all be realized, and at what cost to the average worker?

It’s a balancing act, and the payslip for a 90,000-earner serves as a stark reminder of how policy changes can directly affect our wallets. As we move forward, it’s crucial to stay informed about these changes and their implications, so we can make the best financial decisions for ourselves and our families.

https://epaper.standardmedia.co.ke/issue/2386?src=1#the_standard/page1

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