Most people glance at the bottom number on their payslip, the net pay, and ignore everything above it. That's a mistake. Your payslip is the only document that shows whether your employer is deducting the right amounts for tax, pension, and social insurance. Get it wrong and you're either overpaying tax (leaving money on the table) or underpaying (which creates problems at tax filing time).
The payslip layout is different in every African country because the statutory deductions are different. A Nigerian payslip has CRA and NHF. A Kenyan one has SHIF and AHL. A South African one has UIF and medical tax credits. None of these appear on each other's payslips.
This article walks through the exact flow, from gross salary to net pay, for Nigeria, Kenya, and South Africa. If something on your payslip doesn't match what's described here, that's a red flag worth investigating.
Nigeria: from gross to net
Here's how your Nigerian payslip should flow. Each step removes a deduction until you reach take-home pay.
The flow: Gross → Pension → CRA → Taxable → PAYE → NHF → Net
| Line Item | What It Is | How It's Calculated |
|---|---|---|
| Gross Salary | Total pay before deductions | Basic + housing + transport + other allowances |
| Pension (employee) | Mandatory retirement savings | 8% of basic + housing + transport |
| CRA | Consolidated Relief Allowance | Higher of ₦200k or 1% of gross, plus 20% of gross |
| Taxable Income | What PAYE is calculated on | Gross − Pension − CRA |
| PAYE Tax | Pay-As-You-Earn income tax | Graduated bands: 7%, 11%, 15%, 19%, 21%, 24% |
| NHF | National Housing Fund | 2.5% of basic salary |
| NHIS | Health insurance (if applicable) | 5% of basic (employee share) |
| Net Pay | What you receive | Gross − Pension − PAYE − NHF − NHIS |
What's CRA and why does it matter?
CRA is the biggest tax relief for Nigerian employees. It's not money you receive. It's an amount subtracted from your gross pay before PAYE tax is calculated, reducing your taxable income significantly.
The formula: CRA = max(₦200,000, 1% of gross income) + 20% of gross income. On a ₦500,000 monthly salary, CRA is ₦5,000 (1% of ₦500,000) + ₦100,000 (20%) = ₦105,000. On annual basis, the ₦200,000 minimum kicks in, so it's whichever is higher.
If your payslip doesn't show CRA being deducted before PAYE, you're overpaying tax. This is one of the most common payroll errors in Nigeria.
Verify your numbers instantly with our Nigeria PAYE calculator.
Kenya: from gross to net
The flow: Gross → NSSF → SHIF → AHL → Taxable → PAYE → Personal Relief → Net
| Line Item | What It Is | How It's Calculated |
|---|---|---|
| Gross Salary | Total pay before deductions | Basic + allowances + commissions |
| NSSF | National Social Security Fund | Tier I: 6% up to KES 7,000. Tier II: 6% on KES 7,001-36,000. Max KES 2,160 |
| SHIF | Social Health Insurance Fund | 2.75% of gross salary |
| AHL | Affordable Housing Levy | 1.5% of gross salary |
| Taxable Income | What PAYE is calculated on | Gross − NSSF − SHIF − AHL |
| Gross PAYE | Tax from the 5-band table | 10%, 25%, 30%, 32.5%, 35% |
| Personal Relief | Monthly tax credit | KES 2,400 |
| Insurance Relief | Relief on SHIF premiums | 15% of SHIF, max KES 5,000 |
| Net PAYE | Tax after reliefs | Gross PAYE − Personal Relief − Insurance Relief |
| Net Pay | What you receive | Gross − NSSF − SHIF − AHL − Net PAYE |
SHIF vs the old NHIF: why your deduction changed
If you've been working in Kenya for a few years, you probably noticed your health insurance deduction change in 2024. Under NHIF, your contribution was a fixed amount based on your income bracket (KES 500 to KES 1,700 per month). Under SHIF, it's 2.75% of your gross salary with no cap.
For someone earning KES 100,000 monthly, NHIF was KES 1,700. SHIF is KES 2,750. That's KES 1,050 more per month. Multiply across 12 months and you're paying KES 12,600 more per year for health coverage. Whether the coverage is actually better is... debatable.
Run your full Kenya payslip numbers with our Kenya PAYE calculator.
South Africa: from gross to net
The flow: Gross → UIF → Pension/RA (if applicable) → Taxable → PAYE → Rebates → Medical Credits → Net
| Line Item | What It Is | How It's Calculated |
|---|---|---|
| Gross Salary | Total pay before deductions | Basic + benefits + allowances |
| UIF | Unemployment Insurance Fund | 1% of salary (capped at earnings ceiling) |
| Pension/RA | Retirement contributions (if applicable) | Tax-deductible up to 27.5% of remuneration, max R 350,000/year |
| Taxable Income | What PAYE is calculated on | Gross − UIF − Pension contributions |
| Gross PAYE | Tax from SARS 7-bracket table | 18% to 45% |
| Primary Rebate | Age-based tax credit | R 17,235/year (under 65) |
| Medical Tax Credits | Credit for medical scheme | R 364/month (member) + R 364 (first dependant) + R 246 each additional |
| Net PAYE | Tax after rebates and credits | Gross PAYE − Rebates − Medical Credits |
| Net Pay | What you receive | Gross − UIF − Pension − Net PAYE − Medical Aid (if deducted) |
UIF: small deduction, big safety net
UIF is unique in sub-Saharan Africa. It's actual unemployment insurance. If you lose your job, you can claim UIF benefits for up to 238 days (roughly 8 months), receiving a percentage of your salary. You can also claim for maternity leave, adoption, and illness.
The employee contribution is 1% of salary, matched by your employer. It's capped based on the SARS earnings ceiling. A small deduction that most people forget about until they actually need it. See our UIF guide for claiming details.
Medical tax credits: free money if you have medical aid
If you belong to a medical aid scheme, you get a tax credit that directly reduces your PAYE. It's R 364/month for you, R 364 for the first dependant, and R 246 for each additional dependant. A family of four gets R 1,220/month in tax credits. That's R 14,640 per year in tax savings. If your payslip doesn't show this, you're overpaying.
Verify with our South Africa PAYE calculator.
Common payslip errors to watch for
Nigeria
- Missing CRA: if PAYE is calculated on gross minus pension only (without CRA), you're overpaying. This is the #1 payroll error in Nigeria.
- Wrong pension base: pension should be 8% of (basic + housing + transport), not 8% of gross. If your employer calculates on total gross, you're over-contributing.
- NHF not deducted: some employers skip NHF entirely. While this means less deduction now, it disqualifies you from the 6% mortgage.
Kenya
- Old NHIF rate instead of SHIF: if your deduction is a round number like KES 1,700 instead of 2.75% of your salary, your employer hasn't updated to SHIF yet.
- AHL deducted after tax: AHL should reduce your taxable income. If it's deducted after PAYE, you're paying more tax than you should.
- Missing insurance relief: your SHIF contribution qualifies for 15% insurance relief on PAYE. Many employers don't apply this automatically.
South Africa
- Missing medical tax credits: if you have medical aid and the credits aren't showing, you're losing R 364+ per month in unnecessary tax.
- Wrong tax bracket: SARS updates brackets annually. If your employer is using last year's tables, your PAYE could be slightly off.
- Pension contribution above limit: tax-deductible pension is capped at 27.5% of remuneration or R 350,000/year. Over-contributions don't get tax relief.
What to do if your payslip is wrong
First, calculate what the correct deductions should be using our PAYE calculators. Then compare your calculated numbers against your actual payslip. If there's a discrepancy:
- Raise it in writing. Email your HR or payroll department. Don't just mention it in passing. You want a record.
- Be specific. Say exactly which line is wrong and what the correct amount should be. Attach your calculations.
- Reference the law. In Nigeria, cite the Personal Income Tax Act and the Finance Act. In Kenya, cite the Income Tax Act and KRA tax tables. In South Africa, cite the SARS tax guide. This tells payroll you've done your homework.
- Follow up. If the error isn't corrected within one pay cycle, escalate. In Kenya, you can file a complaint with KRA. In Nigeria, file through the tax authority. In South Africa, SARS.
- Keep your payslips. Store every payslip you receive. If you need to claim a tax refund later, you'll need them as evidence. Save them to your AfroTools dashboard for safekeeping.
Payslip errors aren't always malicious. Most of the time, it's an outdated payroll system or a payroll officer who hasn't updated the tax tables. But the result is the same: you lose money. Check your payslip every month. It takes five minutes.
Verify Your Payslip Now
Use our free PAYE calculators to check if your deductions are correct.
Nigeria PAYE → Kenya PAYE → SA PAYE →Frequently Asked Questions
CRA (Consolidated Relief Allowance) is a tax-free allowance that reduces your taxable income. It equals the higher of ₦200,000 or 1% of your gross income, plus 20% of gross income. It's not money you receive in your account. It's subtracted from your gross pay before PAYE tax is calculated, reducing how much tax you owe. If your payslip doesn't show CRA, you're likely overpaying PAYE.
SHIF is 2.75% of your gross salary. Unlike the old NHIF which used fixed bands (so people in the same bracket paid the same amount), SHIF varies based on your exact salary. If your colleague earns KES 80,000 and you earn KES 120,000, your SHIF contributions will be KES 2,200 and KES 3,300 respectively. The system shifted from flat-rate bands to a proportional percentage.
Yes. UIF (Unemployment Insurance Fund) is South Africa's unemployment insurance. Both employee and employer contribute 1% of the employee's salary. If you lose your job, you can claim UIF benefits for up to 238 days. You can also claim for maternity leave, adoption leave, and extended illness. UIF is one of the few social safety nets of its kind in sub-Saharan Africa.