What is the Contribution Rate for SHIF (Social Health Insurance Fund)?

The contribution rate for the Social Health Insurance Fund (SHIF) for salaried employees in Kenya is 2.75% of their gross salary per month.

Understanding SHIF Contributions

The Social Health Insurance Fund (SHIF) is a crucial component of Kenya's healthcare financing, aimed at ensuring access to health services for its citizens. For salaried employees, specific rates and conditions govern their monthly contributions.

Key Contribution Details

Here’s a breakdown of the monthly contribution requirements for salaried employees:

• Contribution Rate: 2.75% of the employee's gross monthly salary.
• Minimum Contribution: A minimum payment of 300 Kenyan Shillings (KES 300) is required each month, regardless of the calculated percentage of the gross salary.
• Maximum Contribution: There is no upper limit or maximum cap on the contribution amount. This means higher earners will contribute a proportionally larger amount based on their gross salary.

Employer Responsibilities

Employers play a vital role in the remittance of SHIF contributions. They are responsible for deducting the contributions from their salaried employees' gross salaries and remitting these funds to the relevant authority.

• Remittance Deadline: Employers must ensure that these contributions are remitted by the ninth day of the subsequent month. For example, contributions for January salaries must be remitted by February 9th.

Summary of SHIF Contribution Rates

To provide a clear overview, the table below summarizes the key aspects of SHIF contributions for salaried employees:

These contributions are essential for funding the social health insurance scheme, aiming to provide comprehensive health coverage. For more general information about health insurance systems in Kenya, you might refer to reputable news sources and government publications.