Win for Private Sector Employees as Tax-Free Per Diem Raised to 5% of Gross Income
Employees in the private sector are set to earn more through the payment of Per Diems following proposals by the Treasury to adjust the tax-free rate.
As highlighted by Treasury Cabinet Secretary Njunguna Ndung’u during the budget reading, Per Diem that was Ksh2,000 Β and below were not being taxed.
However, he acknowledged that manyΒ things had changed economically including inflation.
Therefore, as a way of cushioning employees, the tax-free rate was raised to 5 per cent of the gross income of the employee.
“Currently, the tax-free amount on subsistence allowance paid to employees in the private sector for a period spent outside the usual place of work while on official duties is capped at Ksh2,000 per day.
