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What Does the Kenyan Law Say About Salary?

What the employment law in Kenya says about salaries and payday

Most employees are more concerned about doing their jobs and getting paid at the end of the month or after the period agreed upon than they are about knowing their employee rights. You will agree with me that as long as you get your dues as agreed, no questions are asked and neither do you go further to try and discover if the deductions made to your salary are done right. Most will also not question if how the process is done is actually right. But are you allowing employers to take advantage of you?

Sharon* is an Accountant at a telecommunication firm here in Kenya. For the last two months she has not received her salary and her efforts to try and get the issue sorted by Human Resource has now hit the wall. The response she keeps getting is that her credentials cannot be found in the newly installed payment system and she has to wait until the situation is resolved.

I don’t know about you, but Sharon agrees with me that 2 months is a long time to work and not get paid for it. “How do they think I’ve been surviving? I have used up all my savings and ran out of friends to borrow money from,” she says. And Sharon is surely not alone, with others suffering a much bitter case.

However much you love your job and respect your employer to allow them time to sort a salary issue, a case like Sharon’s is unacceptable both in human nature and under the Kenyan employment law.

What the Law says about salary in Kenya

1. You should be paid on or before agreed pay day
According to the Employment Act of 2007, employers must provide payment for work done before or on the agreed pay day. The payment made is usually calculated hourly, daily, weekly and monthly depending on the type of contract you signed as an employee. This would mean that if you work for a number of hours in a day then you get paid for each hour and if your contract is for periods exceeding one month or for an indefinite period, then pay day would be every other month.

For Susan’s case and anyone yet to receive their salary days or weeks after pay day, then it means that your employer is breaking the law and you are allowed to bring up a law suit to get your dues.

2. You are entitled to receive a pay slip
Did you ever receive your cheque or check your bank balance after pay day, only to ask yourself why the money was lesser than you thought? Well, that’s why it is always important to have your payslip. A pay slip is the document that explains how much money you have been paid as remuneration for your work and how much money has been deducted in terms of taxes, insurance, NSSF requirements or due to any damages.

The pay slip should also include the reason to which each deduction was made in a way that is clear to employees.

3. You should not pay any money for getting a job
Sometime back we received an email from a recently placed job seeker where for the 3 months he was on probation, a certain amount of money was deducted from his salary. When he raised the issue, the employer said that it was policy for every new employee to get a deduction in payment of job placement.

This is by far a crime according to the Kenya employment act and any employer who participates in this kind of unlawful behavior is answerable to the court. So, have you experienced this before or heard of it? I hope you now know that it is prohibited by law.

The Kenya employment act clearly stipulates how salary should be handled and the above mentioned are just the basic. Do your due diligence and learn your employee rights to avoid a situation where employers take advantage of your innocence and ignorance, especially on matters pertaining the employment contract you sign. Also remember that payment should be made during working hours and at a place that is near your work area, if not in the office.

Do you have any questions about salary or pay day as stipulated by law? Leave a comment below.

For consultancy services, email pwainaina@corporatestaffing.co.ke.
NB: Please note that this is a paid service.

66 Comments

  2. What about contract employment; thus when NGO give renewed contract to staffs yearly but only to get your salary at several times has been reduced without any notification. what does the labor law say about this. Because one end up taking the contract with the deduction because they have no otherwise. Kindly help.

  3. how can I calculate my workers gratuity as they retire from working in the educational institution?

  4. We have worked for an organization and have not received our salaries for the past 9months reasons being that business is down, at the moment they are expecting some payment from the government because a section of their land has been taken for road expansion. we employees wants to be paid our salary arrears and also on redundancy ground. Is it possible to go court for them to be forced to pay us on redundancy ground because the company has no any future.

  5. Hi guys,
    Thanks for bringing up this topic and in my opinion it should be discussed further than this. Last year my employer gave me a warning letter and reduced my salary by 30% for three months. As if that was not enough, just as other Staffs got their pay rise, mine was again reduced from the previous year’s by KSHS 1500. Kindly is this right? And I would like for to share on the extent of penalties in relation with salary.

    JeanJean

  6. hello,hope this finds you well.
    my worry is about the NSSF deduction and over time payment. I have been an employee of a private medical centre from Dec 2015 todate. My salary is deducted the new NSSF contribution monthly but on checking my statement on mid June, i found that the month of may was the only one reflecting ksh.720.
    i have not consulted the management on this issue so far,kindly shun light on this.
    On over tme payment, i wonder whether or not it should be taxed.
    Regards.

  7. Stephen,
    Severance pay applies where an employer is unable to sustain your employment hence seeking separation i.e. restructuring, dissolving the company etc. It does not apply in cases of termination, dismissal, resignation or death.

    It applies to all employees.

    The not less than15 days severance pay for each completed year of service is based on the current Employment Act, unionised companies are guided by applicable CBAs.

    Kweyu

  8. Are all employees eligible for the severance pay and in what instances does it apply?

  9. Probation period is six months extendable by a further six months and not more than twelve months.This is as per the Employment Act of 2007 Cap 226 Laws of Kenya.

    In practice. ..It is however 3 months extendable by a further 3 months.

    Kweyu

  10. Andrew,
    Consolidated means there is 15% component for housing . the law does not compel the employer to provide transport for its employees.
    Advance is provided at the discretion of the employer, there is no provision in the law that require him or her to give.

  11. i resigned from my job almost three years ago and i had worked with the company for more than six years, i was not paid any dues till now, who can help me raise my case or how do i go about it?

  12. What does the law of Kenya say about redundancy ie if a company declares employees redundant what dues are owed to them? Thanks

  13. Have been working for 5yrs, receiving salary in cash with payslip, this good. The problem is am doing a technical work but when salary increase is done, m given less than than the others who are dealing with ,””common sense work”” , when I raised the issue to the manager, he said I should ask the boss .plz help

  14. Hallo! Regarding payment on resignation: Have are the leave days calculated lets say you have resigned in the course of the year,are you entitled to the full leave allowance or do they calculate for the number of months you have worked for?
    Besides,upon resignation,is one entitled to a bonus for the previous year yet declared after one has resigned?
    Please advise.

  16. question
    how can one calculate the amount of Money to be paid after being sucked from a contract I.e a contract of two years and has worked for one year

  18. Lillian if the company is closing down then you will be separated from the company on account of redundancy. You will be paid salary for days worked, leave accrued, notice period if the same was not given in writing and severance pay not less than 15 days salary for each completed year of service. The company may opt to re- hire you afresh as a new employee or not.

    If the company is just changing names without closing down, you will be issued with a review of employment contract terms letter, stating that your employer is changing company names. It will be attested by a Lawyer and witnessed by representatives of both parties.

  19. Dear Noreen,
    Payment in lieu of notice period to an employee will not apply where separation from employment is resignation.

    The employee will pay the employer im lieu of notice period.

    Kweyu

  20. Dear Noreen,

    Probation period as per Employment Act is 6 months and the same can be extended by a further six months but cannot be more than 12 months.

    In practice however, most employers agree on 3 months extendable by a further 3 months.

  21. How can I be assisted on my unpaid salary of six months that led to my resignation. I have been pleading to my former boss but no positive response.Its 9 months since I resigned.

  22. Thanx for all your advice.my name is Achieng I have been employed in an Ngo in Kakamega for the past 9 months was on probation for 3 months but after the three months my employer who are a British charity based in uk want us to keep signing three moths contracts which I have done twice but I feel its wrong
    Is it within the law to have an employee on 3 months contract always???I am a qualified social worker with a diploma in social work and community development from a national polytechnic and 4 years experience in my job.when we complain they tell is the door is open there are many others seeking for the job
    What is your advice please.
    The salary is also merge of I may add,just basic wage

  23. More of these information is needed. Kindly find some space and time in your articles on weekly or monthly basis to advice young employees.
    Thank you.

  24. Josephat, If you have a copy of the said contract then request in writing to HR or whoever is responsible, that you intend to start statutory remittances. If they give a nod then proceed on individual basis as obligated by law. Remember to search and use employer’s statutory codes when making payments. Keep attendance records. These will help you built grounds for a dispute in future when you have separated.
    Plan B, if you don’t have copy of a contract then seek for a better employer because that employer is corrupt and clever.

  28. Suppose you agree with your employer to review your salary after 3 months .is it lawful to review the salary downwards?

  29. Thanks I am really one the affected. It now three months without payment and no clear explanation to why this is happening.

  30. We recently worked for Kapa under an agency that was taking care of marketing activities but the contract was shortened unlawfully. it was mid April and we were told your jobs will end on 6th May. As we were working hoping to stop by then, we were told to stop on 30th April which really affected the team and everyone that was involved. We followed our dues but came in late May but no Unpaid leave days, Short notice which was contrary to the agreement.

    However, we later noticed even statutory deductions were not deposited where they are supposed to be taken.

    CAN SOMEONE HELP WITH LEGAL SERVICES?

  31. This is nice!
    I work for a company that deducts ksh.12000 from sales people without any approval from the employees.early this month i started asking the reasons for this and i am now suspended.

    I plan yo take legal action on this ad its too much.

  33. What happens in the case where I resign but my boss refuses with my salary and unfortunately there was no letter of employment when I started working for them?

  34. Thanks and how is calculated…do they use the current pay or the pay you started with..
    2.
    If the company is changing its name. Is there any need for payments .I mean overdue so as to close the company.?

    Or the bebefits will just get lost?

  35. We have not been paid since february this year to date, Nssf Nhif Paye was stoped to an extend of writing letters to Nssf and Nhif cheating that the company has been closed, we see cars being sold we dont know what will follow next may be the machines.Advice us what we should do since we feel we are loosing even our services.

  36. Hello CSS,

    Quit a brilliant article, very informative and well simplified.

    Thanks for the info,
    Peter.

  37. Comments Hi, I appreciate your good advice on issues touching on employees n their employers relations.
    Kindly advise me on my issue. In January this year I fell sick and had to be away from work for 2 weeks while recuperating. I later resumed duties n to my surprise my employer served me with a show cause letter demanding that I explain why severe disciplinary action should not be taken against me for absenteeism from work without a lawful reason. I communicated back n explained everything n even attached a duly filed n signed sick sheet by a doctor.My problem is that my employer deducted my salary for the duration I was away and has communicated back claiming that the reason for the deduction was that my explanation/reasons I gave for being absent lacked credibility. Kindly advice on what the law says and what I need to do. Thanks.

  38. What does the law says about Oral employment contracts and where the employer pays salaries in cash,at piece meal and at will i.e when he chooses to pay.

  39. I have worked as an accountant with my current employer for 2 years. I have never signed any contract. Aint issued with payslip at the end of the month. He never used to remit my PAYE deductions until this year. Which remedial action should I take because am totally demotivated and tired of being paid peanuts?

  40. In law, is there an institution that is not supposed to pay an employee benefits after leaving? If not, how can a former employee claim from an employer who refuses to pay or doesn’t pay, reason being that it was not part of the signed letter of engagement either in contract or permanent basis

  41. Please clarify for me here..been employed for the last 1 yr but contract said probation is 6 months. after expiry it was extended for two months then again and again till 1 full yr. Then i was informed that I didn’t make it and was released. Whats your take on that?

  42. After probation you are required to be appraised and thereafter confirmed into employment or the probation period extended or you could be released from employment.

    Probation cannot be increased for more than a further three months. Making your probation period a total of six months. After this, it is assumed that without any evidence to the contrary, you are actually a permanent employee of that company.

    Payment in cash is not an issue only that the contract between yourself and the employer needs to be clear. After how long are the payments being made?

    It is to be noted that statutory deductions are compulsory and so is a pay slip.

    I would propose, request the HR via a written letter, to cease payments in cash and thereafter provide your relevant bank details, request for a payslip for the past year and months that you have been working there, pointing out the requirement to pay the statutory deductions.

    It would be prudent to obtain your NSSF and NHIF statements to just show that the same has not been remitted previously.

    You should be ready for the consequences though. They could be good or bad depending on how your communication is received.

  43. You should speak to the HR in this case as I am presuming there is actually one as they have an ethical duty to adhere to the law of the land.

  44. There are several matters to consider when calculating the dues:
    1. Unpaid salary
    2. Leave days
    3. Payment in lieu of notice
    4. Staff account deductions
    5. Statutory deductions
    6. Overtime

    Could assist if you are clearer on what you are looking to get.

  45. I have gained much from the article,however i have one question. I am a PTA teacher in a public secondary school,i was not paid last december dues while my colleagues were paid.When i reach out to the principal on that matter she simply said that i was not suppose to paid. Advise me on way forward in getting that sallary or a genuine reason for that.

  46. i need n asistant i have been working in a cmpany for about seven years though sighning a contrac which last for six months paying tax receiving payslips know im askingmyself im i entitled for a paid service after i reuse to work on a contract or when the other party decide not to reew after six months

  47. Informative article. Stephen above mentioned about Asians….@least we are aware of such. But how do you explain working for a ‘government’ department without a payslip and their are deductions made every month as much as your are on casual/temporal terms or status????

  48. What about an employer who decides to review employees salaries downwards after 10 years, is that legal?

  49. MY EMPLOYER DEDUCT MY MONEY CLAIMING IT IS BANK A/C OR SALARY PROSSESING COST, IS THIS LAWFUL…I THINK HE SHOULD FOOT/INCUR THE COST..

    KINDLY ADVICE

  50. This is important law. In case of expat working in Kenya .What the Kenyan law says about expat salary if it is delayed and not paid for more than 3 months ?

  51. Thank you for this information.I have served in a certain security firm in Nairobi as a security officer for five years ten months,when i was terminated,the company paid me one year dues and other over dues and the remaining four years ten months they are telling me to go to britam insurance where they have been paying my pension scheem,when i went there,these people only paid me a lumpsum of 6900/-.So i fail to understand how??So my question is,is it really logical?does a lumpsum of 6900/-make sense for this period of 4years 10 months?

  52. Josphat I would say its very wrong for yu to recieve your pay in cash unless yu are apiece rate employee or casual employee but engagements more than six months yu shuld be confirmed as an employee furthermore both of you are breaching the employment contract by not paying taxes to the government.
    if I may ask did yu sign any employment contracts documents? becoz its this document that yu can move with in a court of law for compensation.

  53. Thanks for this educational topic. I have been working for a big organisation since 2011 to date on a contractual basis. up-to now am still a casual employee. Since jobs are difficult to come across, I have to persevere in order to take care of my family. five years of being a casual employee is intimidating, instead of appreciating our effort we are always threatened of being laid-off. What do we do, and who do we run too? slot of people are suffering in silence.

  54. what action can one take when you submit your resignation letter to your employer but he or she witholds your salary for the month and refuses to write a recommendation letter for you. This mostly happens when you refuse to change your decision to remain at the company?

  56. Last year August I got a job on contract with TSC but till now they haven’t paid me. It is six months now yet the contract ended on December as per the appointment letter.
    How should I proceed because from the above rule one has been violated, kindly advice,

  57. My query is in regards to health insurance for employees. For the 2 years I’ve been working at this company, my bosses pay for Thiers and their families Insuarance using the company and bill charged to the company. same applies to the trips they take with their families. When we ask, were told theres no money to support a health plan for employees. Is this legal?
    also please advice on how renumeration is calculated after you issue a 30day notice, and will you be paid for your leave days if you still have them. my boss refuses to let me go on leave and threatens to zero rate them end of year.

  58. ACCORDING TO HOW I KNOW YOU ARE SUPPOSE TO GIVE YOUR EMPLOYER NOTICE PERIOD LET’S SAY ONE MONTH,THEN YOUR WILL CALCULATE THIS WAY:
    THAT MONTH SALARY——+_—————+++—–X
    PLUS ONE MONTH SALARY X NO OF YEARS WORKED———————————+—–_—————————X
    PLUS ANY PENDING LEAVE DAYS ———-+++++—X
    —–
    TOTAL BENEFITS FOR FIVE YEARS———————XX

  59. My employer has resorted to take my original academic certificates and he is not ready to give them out at any given time. Alala

  60. What contribution or responsility does the government has over under payment from textile companies which are owned by Indians, with management owned unions that can’t help at all.

  63. Hello,
    Kindly shed some light on what the law says about salary advances. suppose i worked for 15days and i ask my employer to pay me my 15days worth of service, is this considered a salary advance? does the law entitle me to this sum or do i have to work to the end of the month to receive pay.
    secondly most employers use consolidated salary schemes to evade paying benefits like housing, transport etc. kindly elaborate how one can determine whether the consolidated pay check includes these benefits.

    Thank you.
    Regards,
    Andrew.

  65. Kenyans are suffering at the hands of Asians. they pay peanuts but no payslips.who can rescue us from this slavery?

  66. Thanks for coming up with this topic
    I have a related issue and i am seeking for your advice. I have been working for company for 1 year and 7 months now. I signed a contract with the employer which clearly stated that i was to be on probation for 3 months after that i will be confirmed to be permanent which my employer has not honored up to now but my worry is; i have been receiving my salary in cash, i have been following about this from the first month i joined the company up to now nothing has been done and of course they have not been contributing to statutory deductions as its required by law. Kindly advice which is the best step to take? Thanks
    Regards,

    Josephat Onsongo

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