TSC Salary Deductions: How Much Does TSC Deduct From Teachers Salary?

Get ready to decode the complexities of the latest salary deductions recently implemented by the Teachers Service Commission (TSC).

Whether you’re a seasoned educator or a new entrant in the teaching profession, this comprehensive guide will help you understand how your salary structure has been revised and what it means for your monthly take-home pay.

We cover the following;

TSC Salary Deductions
FAQs on TSC Salary Deductions

Starting from July 2023, your paycheck from TSC was to look a little plumper.

Yes, you read that right.

Thanks to a directive issued by the government to the Salaries and Remuneration Commission (SRC), your basic salary was to be increased by 7 to 10 percent but July Payslip came with a shocker — Instead of July pay rise, we had July pay cut.

No increase in salary and a shocker introduction of unexpected NSSF deduction even as teachers paying heavily for the provident fund.

Let’s break them down for a better understanding:

Mandatory Deductions

Pay As You Earn (30%)

Brace yourself, as a whopping 30% of your gross pay will be deducted as tax, depending on your job group.

This means teachers in job categories from B5 (lowest) to D5 (highest) will experience this deduction.

Provident Fund (7.5%)

If you’re 45 or younger, an additional 7.5% of your basic pay will go towards the Public Service Superannuation Scheme (PSSS).

Consider this as your personal retirement savings plan where you and your employer contribute equally.

Deductions for Associations

KNUT, KUPPET, KUSNET, and KEWOTA

If you’re part of these teacher associations, expect to see deductions varying from 1.45% to 2% of your base pay, depending on your school category.

Other Deductions

Housing Fund (1.5%)

There’s a new kid on the deduction block! Starting from July, a deduction of 1.5% of your monthly salary will be implemented as a Housing Levy.

Loan and Premium Deductions

If you’ve availed loans from banks or cooperatives, expect deductions towards loan repayment.

Similarly, deductions may apply if you’ve purchased insurance policies requiring premiums.

Higher Personal Loan Rates

As the Central Bank of Kenya (CBK) has hiked the borrowing rates from 9.5% to 10.5%, getting a loan just became more expensive for teachers like you.

NHIF (2.75%)

From June 26, 2023, you’ll be contributing 2.75% of your gross salary towards the National Hospital Insurance Fund (NHIF), according to a proposal by President William Ruto.

Remember, each of these deductions plays a specific role in maintaining the financial ecosystem.

While some might seem steep, they are essential for ensuring smooth functioning of various institutions.

So, keep this guide handy and stay updated on how your hard-earned money is allocated. After all, a well-informed teacher is a happy teacher.

FAQs on TSC Salary Deductions

Q: Why was there no salary increase in July despite the government’s directive?

A: The expected salary increase in July did not materialize due to an unexpected introduction of NSSF deductions and other adjustments, which offset the planned salary increment.

Q: What is the purpose of the Provident Fund deduction?

A: The Provident Fund deduction, amounting to 7.5% of your basic pay, is a retirement savings plan where you and your employer contribute equally to secure your future.

Q: How do deductions for associations like KNUT and KUPPET benefit teachers?

A: These deductions support the activities of teacher associations, providing members with representation, advocacy, and other benefits to enhance their welfare.

Q: What is the Housing Fund deduction for?

A: The Housing Fund deduction, set at 1.5% of your monthly salary, contributes to the government’s affordable housing initiative, aimed at providing housing solutions for Kenyan citizens.

Q: Are the deductions for loans and premiums mandatory?

A: Deductions for loans and insurance premiums are based on voluntary agreements between you and the respective lending or insurance institutions.

Q: Why has the NHIF contribution increased to 2.75%?

A: The NHIF contribution increase aims to enhance healthcare services and ensure the sustainability of the National Hospital Insurance Fund for all members.

Q: How can I manage or change my deductions if needed?

A: You can manage your deductions by logging into the TSC online payslip system and accessing the “3rd Party Self-Service Module” to modify or stop specific deductions as required.