Enter your monthly basic pay, the gratuity rate in your contract and the contract length.
Estimate only. Rates checked 13 Oct 2026.
Tax exemption from 1 July 2026
KRA’s Finance Act 2026 summary says gratuity is tax-exempt only if the contract of service is at least three continuous years (or an extension of a three-year contract) and the gratuity does not exceed 31% of emoluments earned in that period. The calculator applies this test to the rate you enter. Gratuity is a contract term, not a statutory entitlement, so check your contract.
Frequently asked questions
Is gratuity taxable in Kenya?
It is exempt only if the contract is at least three years and gratuity is no more than 31% of emoluments, from 1 July 2026.
Is gratuity mandatory?
No. It depends on your contract.
More: All guides · Tax calculators · PAYE calculator
Sources
- KRA – Finance Act 2026: What It Means for You (checked 13 October 2026)
