How to Calculate SHIF Deductions in Kenya 2026

In 2026, SHIF contribution is:

2.75% of gross monthly income

However, the minimum monthly contribution is KES 300.

This means no one pays below KES 300.

Easiest Way to Calculate SHIF Deductions

Manual calculation can lead to errors.

Use this free tool for instant results:
SHIF Calculator

It automatically applies the 2.75% rate and minimum KES 300 rule.

SHIF Deductions Formula

If (Gross Salary × 0.0275) ≥ 300
→ Pay calculated amount

If (Gross Salary × 0.0275) < 300
→ Pay 300

How to Calculate SHIF Deduction Step by Step

Step 1: Determine Your Gross Salary

Gross salary includes:

• Basic salary
• Allowances
• Other taxable earnings

Example:

Basic salary = 25,000
House allowance = 5,000

Gross salary = KES 30,000

Step 2: Apply the 2.75% Rate

Formula:

SHIF Deduction = Gross Salary × 0.0275

Step 3: Compare With Minimum (KES 300)

If the result is:

• Above 300 → Pay the calculated amount
• Below 300 → Pay KES 300

Example Calculations

Example 1: Low Income

Gross salary = 8,000

8,000 × 0.0275 = 220

Since 220 is below 300 → You pay KES 300

Example 2: Average Income

Gross salary = 30,000

30,000 × 0.0275 = 825

Since 825 is above 300 → You pay KES 825

Example 3: Higher Income

Gross salary = 100,000

100,000 × 0.0275 = 2,750

You pay KES 2,750

Quick Reference Table (2026)

Also see:

How to Pay SHA Contributions via M-Pesa

SHA Registration in Kenya: Step-by-Step Guide