The Social Health Authority (SHA) has issued a notice to clarify some FAQs on the Social Health Insurance Fund (SHIF) statutory contribution.
What is meant by gross salary or wage?
Employers are required to deduct a SHIF contribution of 2.75% from the gross salary or wage for households whose income is derived from salaried employment. Gross salary or wage includes basic salary and allowances paid to an employee on a regular (monthly) basis as a salary or wage.
Does the SHIF contribution quality for insurance tax relief?
The SHA is of the view that contributors to the Social Health Insurance Fund (SHIF) should qualify for insurance tax relief but has deferred to the Kenya Revenue Authority (KRA) for confirmation. As of the time of this publication, the KRA has not yet confirmed whether SHIF contributions qualify for insurance tax relief.
Is SHIF an employee and employer contribution?
No, employers are not required to match the employee's contribution. SHIF is an employee-only contribution.
Please see attached.