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SHA Payslip Shocker For middle class workers

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SHA Payslip Shocker For middle class workers

 

SHA Payslip Shocker For middle class workers

 

Middle class workers are reeling in shock after the state raided their payslips for statutory deductions to fund the newly rolled out Social Health Insurance Fund.

Together with housing levy and increased pay as you earn (Paye) for some workers, the middle class have lost a substantial chunk of their pay, forever, to the government.

A Kenyan earning a gross salary of Sh500,000 for instance will be deducted Sh161,957.

This consists of SHIF deduction of Sh13,750, NSSF of Sh2,160.00, Paye of Sh138,547.86 and housing levy of Sh7,500.

This is an increase of about 17,373 from 2022 when President Uhuru Kenyatta retired.

The Social Health Insurance Fund took effect this month, with workers now being hit by the reality of the new rate imposed by President William Ruto’s administration.

Each Kenyan is expected to pay 2.75 per cent of their gross income the highest levy on salaries since independence.

Kenyans in the informal sector are also expected to pay 2.75 per cent of their earnings, to be determined by a means testing tool that is still non-operational.

Under the NHIF, the lowest monthly premium was Sh150, rising to Sh950 for Kenyans earning Sh35,000.

Any gross earnings above Sh35,000 will now attract a higher levy, up to 16 times more for high earners.

SHA will take away Sh963 every month for those earning Sh35,000. Those earning Sh100,000 gross pay will lose Sh2,750 every month, or Sh33,000 a year.

The maximum NHIF monthly premium was Sh1,700 for those earning Sh100,000 and above.

The highest amount a Kenyan earning a gross pay of Sh100,000 may take home now is Sh79,000, after the Paye, SHIF, NSSF and housing levy deductions.

Kenyans earning Sh200,000 gross monthly pay will contribute Sh5,500 every month to SHIF or Sh66,000 a year.

This amount is comparable to the amounts Kenya pay for private health insurance cover, which most employers offer.

Those earning Sh300,000 monthly gross pay will lose Sh99,000 to SHIF every year.

Kenyans in this income bracket are few and already heavily taxed.

There is already discontent because many of the SHA benefits are low compared to private insurance schemes, calculations show.

Public health specialists and health economists, for instance, questioned the wisdom of allocating Sh935 per household in one year to buy eyeglasses.

fact that the SHIF people are always writing long lists of services but severely limit the funding of the services. So, when people go to hospitals, there is no service, meaning the public are forced into their pockets and the middle class have to maintain an expensive private insurance policy. Poor Kenyans have to remain in social groups where endless health fundraisers take place. This, despite the steep deductions continuing. It is sad and unjust,” Mwangi said.

“The middle class is getting a raw deal in this country because even for those at the bottom of the pyramid, they have to look to the middle class for support, and this lot is often one paycheck or disease a way from poverty.”

Groups representing workers are now questioning the benefits workers will get from the health levy.

Doctors say higher deductions are not commensurate with the benefits package or the actual services available in hospitals.

SHIF is one of the three funds administered by the Social Health Authority, the new body that replaced the National Hospital Insurance Fund.

While SHIF is funded through premium contributions, the other two funds – the Primary Healthcare Fund and Emergency, Chronic and Critical Illnesses Fund – will be financed by the government through taxes, donations and gifts.

“SHA is deducting more from workers’ salaries, but providing less. This is unacceptable, as workers are paying more for substandard services, threatening their well-being,” said Davji Atellah, secretary general of the Kenya Medical Practitioners Pharmacists and Dentists Union.

The government directed employers to pay the levies to any of the six banks collecting the money for SHA.

“We urge Human Resource Practitioners to declare their employees on the employers portal to guarantee their eligibility to benefit under the Social Health Authority. Employees who are not declared cannot access services even if they have self-registered,” Health PS Harry Kimtai said.

“We also have our own pay bill number for individuals who wish to pay via M-Pesa. Generate the eSlip number and use M-Pesa pay bill number 200222 to pay.”

Health facilities will be refunded Sh11,200 for normal delivery and Sh32,600 for caesarean section.

Experts say some of these tariff s are below market price and Kenyans may still top up in some hospitals.

The fund will pay Sh2,400 for bed admission every day. The NHIF has been paying Sh4,000 daily. The admission is capped to 50 days maximum.

However, the rebates for some services have been enhanced, to the benefit of healthcare facilities.

For instance, facilities will be refunded Sh10,650 for dialysis per session and Sh180,000 per month for peritoneal dialysis. There is a maximum of three sessions per week for haemodialysis, compared to two sessions only under NHIF.

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