6 Deductions that will Impact TSC Teachers’ Pay slips August 2023

6 Deductions that will Impact TSC Teachers’ Pay slips August 2023 Teachers employed by Teachers Service Commission (TSC) will have to face 6 deductions on their August 2023 pay slips. The teacher’s employer is also expected to increase teacher’s salary between 7-10% Below are the deductions that will Impact TSC teachers’ pay slips August 2023 MANDATORY DEDUCTIONS

1. Pay As You Earn (PAYE) (30%)

This is one of the mandatory deductions that apply to all TSC teachers. Teachers from the highest job group D5 to the lowest job group B5 will face a deduction of 30% of their gross pay going towards tax commonly referred to as Pay As You Earn (PAYE).

2. Provident Fund (7.5%) the Provident Fund is a mandatory deduction for TSC teachers aged 45 years and below.

This is a new contributory pension scheme that will see TSC teachers contribute 7.5% of their monthly basic salaries; while the employer tops up with 15% of the employee’s basic salary. To create and verify your account and contribution dial USSD Code *378#  ID follow the prompts..

3. Union Dues

Union deductions from Kenya National Union of Teachers (KNUT), Kenya Union of Post Primary Education Teachers (KUPPET), Kenya Union of Special Needs Teachers (KUSNET) and Kenya Women Teachers Association (KEWOTA) deductions are meant to help unions to run their daily operations. For primary school teachers, they are deducted 2% of their basic pay towards KNUT. Their counterparts in Post primary school teachers (Secondary and tertiary) face 1.8% of basic pay deduction towards KUPPET. Those 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 their August pay slips. The Housing Tax will be equivalent to 1.5% of gross pay. The employer will match the amount.
5. Loan and Premium deductions

This applies to teachers with loans from Banks, Saccos or even Microfinances will find their pay slips with deductions going towards servicing the loans. Some teachers have also invested in insurance companies by taking insurance policies;

6. National Hospital Insurance Fund (NHIF) deduction (2.75%) National Hospital Insurance Fund (NHIF) deduction will be effected to enhance equality in payment.