SHA Issues Notice to Employers on Mandatory Deductions

The Social Health Authority (SHA) on Monday, October 14, reminded employers to ensure that their workers remit monthly contributions to the Authority. 

In a notice, the Authority outlined the specific contributions employees are required to make and the banks through which the payments will be channelled.

“This is to inform all employers to ensure compliance with the Social Health Insurance (SHI) Act No. 16 of 2023 and the Regulations on the remittance of contributions in the respective October 2024 payrolls.”

“The contributions shall be deducted and remitted through any of the following Bank Collection Accounts,” part of the notice read.

SHA gives direction on employee deductions

According to the Authority, Section 27(2)(a) of the SHI Act provides that all statutory contributions from wages or salary will be deducted monthly, by the employer at the rate prescribed under the Act.

Further, the Authority said that all salaried employees are supposed to remit 2.75 percent of the gross salary or wage.

“Regulation 17(1) of SHI General Regulations further provides that a household whose income is derived from salaried employment shall pay a monthly contribution to the Social Health Insurance Fund at the rate of 2.75% of the gross salary or wage, to be remitted by the ninth (9th) day of every month,” the notice read.

Also Read: SHA Benefits Accessible to All Kenyans for Free Regardless of Premium Payment Status

Additionally, the Authority revealed that Section 48(1) of the SHI Act provides for offences committed by any person or contributing employer who:

1. Fails without lawful excuse to pay to the Social Health Insurance Fund within the period prescribed by the Act, any contribution which he or she is liable to pay;
2. Knowingly makes any deduction from the wages of the employee other than a deduction which he or she is authorized to make for the purpose of the SHI Act;
3. Knowingly makes any false statement or representation, or produces or furnishes, or causes to be produced or furnished, any document or information which he or she knows to be false.

Also Read: Kuria Reveals Solutions for Hospitals Rejecting SHA Patients

Banks where the Authority’s monthly deductions will be channelled

Furthermore, the Authority highlighted banks where SHA contributions shall be channelled which include:

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