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Let's break down the payroll calculation step by step for each employee based on the data provided and the deductions:

### Deductions Breakdown
1. **Affordable Housing Levy (AHL):** 1.5% of **Gross Income**.
2. **NSSF:** 5% of **Gross Income**.
3. **NHIF:** 3% of **Basic Pay**.
4. **PAYE:** 30% of **Gross Income**.
5. **Housing Allowance:** 15% of **Basic Pay**.

### Formula Breakdown:
- **Gross Income** = Basic Salary + Housing Allowance
- **Housing Allowance** = 15% of Basic Salary
- **Total Deductions** = AHL + NSSF + NHIF + PAYE + Loan Repayment
- **Net Pay** = Gross Income - Total Deductions - Salary Advance

Now let's compute each employee's **Gross Income**, **Deductions**, and **Net Pay**.

#### 1. **Angel Chebet**
- **Basic Salary** = 50,000
- **Housing Allowance** = 15% × 50,000 = 7,500
- **Gross Income** = 50,000 + 7,500 = 57,500
- **AHL** = 1.5% × 57,500 = 862.5
- **NSSF** = 5% × 57,500 = 2,875
- **NHIF** = 3% × 50,000 = 1,500
- **PAYE** = 30% × 57,500 = 17,250
- **Total Deductions** = 862.5 + 2,875 + 1,500 + 17,250 + 10,000 = 32,487.5
- **Net Pay** = 57,500 - 32,487.5 - 6,000 = 19,012.5

#### 2. **Bob Munene**
- **Basic Salary** = 45,000
- **Housing Allowance** = 15% × 45,000 = 6,750
- **Gross Income** = 45,000 + 6,750 = 51,750
- **AHL** = 1.5% × 51,750 = 776.25
- **NSSF** = 5% × 51,750 = 2,587.5
- **NHIF** = 3% × 45,000 = 1,350
- **PAYE** = 30% × 51,750 = 15,525
- **Total Deductions** = 776.25 + 2,587.5 + 1,350 + 15,525 + 12,000 = 32,238.75
- **Net Pay** = 51,750 - 32,238.75 - 5,000 = 14,511.25

#### 3. **Chris Lemayan**
- **Basic Salary** = 30,000
- **Housing Allowance** = 15% × 30,000 = 4,500
- **Gross Income** = 30,000 + 4,500 = 34,500
- **AHL** = 1.5% × 34,500 = 517.5
- **NSSF** = 5% × 34,500 = 1,725
- **NHIF** = 3% × 30,000 = 900
- **PAYE** = 30% × 34,500 = 10,350
- **Total Deductions** = 517.5 + 1,725 + 900 + 10,350 + 0 = 13,492.5
- **Net Pay** = 34,500 - 13,492.5 - 0 = 21,007.5

#### 4. **Diana Nina**
- **Basic Salary** = 48,000
- **Housing Allowance** = 15% × 48,000 = 7,200
- **Gross Income** = 48,000 + 7,200 = 55,200
- **AHL** = 1.5% × 55,200 = 828
- **NSSF** = 5% × 55,200 = 2,760
- **NHIF** = 3% × 48,000 = 1,440
- **PAYE** = 30% × 55,200 = 16,560
- **Total Deductions** = 828 + 2,760 + 1,440 + 16,560 + 15,000 = 36,588
- **Net Pay** = 55,200 - 36,588 - 9,000 = 9,612

### Summary of Net Pay for November 2023:
1. **Angel Chebet**: Sh. 19,012.5
2. **Bob Munene**: Sh. 14,511.25
3. **Chris Lemayan**: Sh. 21,007.5
4. **Diana Nina**: Sh. 9,612

Would you like further details or explanations on any of the steps?

Here are some related questions to expand your understanding:
1. How would the net pay change if PAYE was reduced to 25%?
2. What impact does increasing the NHIF deduction rate have on net pay?
3. How would the calculations change if the salary advance were doubled?
4. What would happen if a new tax of 2% on basic salary were introduced?
5. How does the housing allowance contribute to gross income and taxes?

**Tip:** Keeping track of all deductions and their percentage rates is key to accurate payroll calculations.

Chanzo Ltd. operates a factory with four operators. The company compensates using a labor remuneration system, and the payroll for November 2023 needs to be prepared based on several deductions and allowances.

Explore a step-by-step payroll calculation example involving four employees. Learn how to compute net pay by applying deductions like PAYE, NHIF, AHL, and NSSF. See how salary advances and housing allowances affect net earnings.

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