If you have ever stared at your payslip and felt like you were reading a secret code, you are not alone. Most employees only see deductions without really knowing what they stand for. On the other side, many employers struggle to keep up with compliance, and getting it wrong can be very costly.
Let’s break these abbreviations down in simple terms so both employers and employees know what they really mean.
SHIF – Social Health Insurance Fund
SHIF is set to replace NHIF in Kenya. It is designed to provide universal health coverage so that everyone has access to healthcare. Both employers and employees contribute, creating a safety net for medical expenses. For SMEs, understanding SHIF is key to staying compliant and preparing for the transition.
SHA – Social Health Authority
SHA is the body responsible for managing SHIF. Its job is to ensure contributions are collected and properly used. For employees, it guarantees that the money deducted from their salary truly goes toward healthcare. For employers, it introduces stricter oversight and reporting duties.
NSSF – National Social Security Fund
NSSF is all about preparing for retirement. Both employers and employees contribute monthly to build savings for the future. When employers fail to remit NSSF, they risk penalties, and employees lose out on valuable benefits they should enjoy later in life.
PAYE – Pay As You Earn
PAYE is the income tax deducted directly from salaries and sent to the Kenya Revenue Authority. Employers act as tax agents in this process, so accuracy and timeliness are critical. For employees, PAYE ensures taxes are handled without having to file separately each month.
Why These Abbreviations Matter
These letters on your payslip represent far more than deductions. They stand for healthcare, retirement, and tax compliance. They are directly tied to employee rights and financial security. Employers have a responsibility to manage them correctly, and employees have every right to understand what is being taken from their pay.
How FaidiHR Makes It Simple
FaidiHR removes the confusion. The platform automatically calculates, deducts, and tracks SHIF, SHA, NSSF, PAYE, and other statutory obligations. This means no guesswork and no manual errors. Employers get peace of mind knowing they are compliant, while employees gain clarity and transparency.
With FaidiHR, compliance is not stressful. It becomes part of everyday HR and payroll.
Final Word
The next time you see SHIF, SHA, NSSF, or PAYE on your payslip, you will know exactly what they mean and why they matter. With FaidiHR, businesses can stay compliant and employees can feel confident that their rights are being protected.
Phone: +254 702 339 699
Email: sales@faidihr.com