BoM Teachers to Pay 1.5% Housing Levy
BoM Teachers to Pay 1.5% Housing Levy
Principals and head teachers who have failed to contribute 1.5% of their Board of Management (BOM) teachers’ and support staff’s monthly gross income to the Housing fund are being pursued by the Kenya Revenue Authority (KRA). Primary and secondary school heads are now being directed by KRA to make sure that the 1.5% housing levy is deducted from the gross monthly remuneration of teachers and support staff.
KRA is requesting that the paychecks of individuals who have not paid the tax be withheld in order to cover the arrears from July to October. Heads of secondary schools in some counties received notices outlining the 1.5% fee that would be subtracted from the gross pay of BOM workers and employers as of July 1, 2023.
Since the Finance Act was passed, every employee has been forced to pay 1.5% of their gross income into the housing fund, and employers must also contribute the same amount. Due to a teacher shortage, this involves BOM teachers helping TSC teachers as well as other school employees like watchmen, cooks, librarians, and bursars.
The authority issues a warning to school heads in the event that they neglect to enact the mandatory housing tax deductions for their workers, as they grapple with the task of withholding and sending these amounts to KRA. When schools return in January, it is anticipated that this circumstance would bring changes for affected staff, especially those paid casually without payslips.
