BOM Teachers and Support Staff to Start Paying 1.5% Housing Levy in Latest KRA Order
The Kenya Revenue Authority (KRA) is now after Principals and Headteachers who failed to remit 1.5% of their Board of Management (BOM) teachers and support staff monthly gross income towards the Housing fund since.
The tax collector now wants the school heads of both primary and secondary schools to ensure 1.5% housing levy is deducted from the teachers and support staff gross income each month.
KRA also wants those who failed to pay the levy to have their salaries chopped to pay the July, August, September, and October arrears.
In one of the notices issued and seen by Teacher Arena, KRA demands 1.5% deducted from secondary school BOM employees and employers gross income with effect from 1st July 2023.
“The levy will be deducted by employers from employees gross salary and be remitted to Kenya Revenue Authority together with the employers contribution,” read a notice to secondary school heads in Vihiga and Kakamega counties by KRA Department for Domestic Taxes.
Since the passing of the Finance Act, all employees are mandated to pay 1.5% of their gross income towards the housing fund.
Employers are also required to remit the same percentage towards the kitty to support their employees.
Many schools have BOM teachers to support the TSC teachers who are struggling with a huge teaching load resulting from acute teacher shortage.
Schools also have other employees to support in other areas. These include Watchmen, Cooks, Librarians, Bursar etc.
This means beginning January when schools reopen things may change for this category of employees who mostly are paid casually without payslips.
Schools are left with no other option but to deduct and remit the funds to KRA, However the big problem will be schools (employers)remitting the same amount to KRA as required.
KRA warned of consequences should school heads continue paying their staff without deducting and remitting the housing tax.