Statutory deductions are the deductions effected on ones pay as stipulated by law such as the Paye Act, LST Act.
They include Pay As You Earn (PAYE), Local Service Tax (LST), and National Social Security Fund (NSSF) contribution. PAYE is deducted every month and is charged based on your monthly income while LST is charged annually and it is based on one’s annual income. This is usually deducted during the 1st four months of the financial year after which the deduction is stopped. NSSF is deducted monthly and the employee contributed 5% of their gross salary while the employer contributes 10% of the employee’s gross salary.
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