The government of Kenya has rolled out major changes affecting how payslips are prepared and distributed in both the public and private sectors. These changes aim to promote greater financial openness and protect employee rights.
According to new directives from the Ministry of Labour and Social Protection, all employers must now provide their staff with detailed payslips.
Each payslip should clearly outline gross earnings, allowances, statutory deductions including PAYE, NSSF, NHIF, and the Housing Levy and the resulting net salary.
The reforms were prompted by numerous worker complaints regarding unclear or incomplete salary breakdowns. Many employees reportedly struggled to understand the specific deductions made from their pay.
Labour Cabinet Secretary Florence Bore explained that the initiative seeks to make salary structures more transparent. She underscored the importance of every employee knowing precisely how their pay is calculated and why certain amounts are deducted.
Bore also stressed that the policy aims to promote equity, build trust between workers and employers, and increase transparency. Employers who ignore these new requirements could face penalties or legal consequences.
While electronic payslips are still valid, the updated guidelines mandate that physical copies must be issued upon request, especially to address documentation gaps in informal and privately run businesses.
Beyond protecting employee welfare, the reforms are also designed to enhance government monitoring of statutory payments.
These measures are part of a wider national agenda to foster accountability, encourage sound financial practices, and modernize the country’s social security system.