Service Gratuity Calculator

Calculations for PAYE (tax) on service gratuity or severance pay in Kenya are based on two main factors, the gratuity amount and the number of years of service:

• Take total gratuity amount (lump sum) and number of years of service
• Divide the total lump sum equally to all years of gratuity
• Taxable amount for each year is calculated using the annual tax rates for that year
• If the years of service exceed 5 years, all remaining years of service are bundles on to the 5th year.

Try our other calculators:

• PAYE calculator for Kenya (determine net pay from basic or determine basic from net pays)
• Fringe Benefit Calculator
• Hourly rate and daily rate calculator

 

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