SHIF Contributions: How Much Should Be Contributed?
Contributions to the Social Health Insurance Fund (SHIF) are set at 2.75% of an employee’s gross salary or annual income for non-salaried earners. The minimum contribution is Kshs. 300, ensuring health coverage for all.
SHIF vs. NHIF: Rate Comparison
|
GROSS PAY |
NHIF (Kshs) |
SHIF (Kshs) |
|
20,000 |
750 |
550 |
|
20,001 - 50,000 |
1,200 |
1,375 |
|
50,000 - 100,000 |
1,200 |
2,750 |
|
100,001 - 200,000 |
1,200 |
5,500 |
|
200,001 - 500,000 |
1,200 |
13, 750 |
|
500,001 - 1,000,000 |
1,200 |
27,500 |
SHIF contributions increase with income, providing broader health services, unlike NHIF, which has flat rates beyond certain salary levels.
Who are the Contributors and Beneficiaries?
- Contributors: Individuals who make SHIF payments, including salaried and non-salaried workers.
- Beneficiaries: Include the contributor, spouse (under the Marriage Act), and children under 25. Polygamous families can cover multiple spouses and children.
- Adult Dependents: Individuals over 25 without an income and living with parents must contribute **Kshs. 300 per month** as a separate household.
SHIF on payroll.
Implementing these changes seamlessly is essential. FaidiHR’s payroll system is a comprehensive solution that’s already equipped to handle monthly statutory deductions for SHIF. Streamline your payroll processes effortlessly with FaidiHR, ensuring compliance and efficiency every step of the way.