Crucial thing not addressed in House Levy that might cost employees

The government’s directive to have employees deducted a Housing Levy of 1.5% has come into effect.

This follows an update by the Ministry of Housing and Urban Development on Tuesday that the first contribution will be due by May 9, 2019.

The ministry in a statement instructed employers to remit housing levy fund by May 9.

Houses

“…provided that the sum of the total monthly contributions shall not exceed Sh5,000. Voluntary contributions may also be made to the scheme at a minimum of Sh2,000 per month,” the ministry said.

The employers are require to deduct and remit the levy together with other statutory levies from both the employer and the employee by 9th of each succeeding month.

This should be done together with other payroll statutory deductions, they noted.

The housing fund shall be used to finance the affordable housing scheme under the big four agenda.

But house are these deductions going to be kept? Well, with NHIF deductions, Kenyans have a unique number to which the payments are made, same to NSSF and PAYE which uses a Kenya Revenue Authority Pin.

Have employees and employers been provided with House Levy numbers? Do you know how you will claim the money later, now that it is a voluntary contribution? Which number will you use? How will you know that you are now eligible for a house?

What then identifies an employee in this deduction?

These are some of the questions the government needs to clarify.

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