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Pain for Civil Servants, Teachers as PAYE tax goes up, housing levy introduced

| December 3, 2025 | Breaking news | No Comments
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JUST IN:

The National Treasury is now proposing for 35% income tax on all monthly salaries above Sh500,000.

According to a copy of the Finance Bill 2023, Treasury is also seeking to deduct 3% of all employees’ basic salaries towards a kitty known as the National Housing Development Fund. This deduction will be matched by another 3 per cent by the employer.

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The Housing deduction for employees is capped at Sh5,000.

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