Earmarked Social Security Deductions
Beyond core income tax, payroll systems manage specific non-tax statutory deductions earmarked for social protection funds. These funds operate on a insurance model rather than general taxation. They require contributions from both the employee and the employer.
National Health Insurance Levies
National health levies fund universal public healthcare coverage. Modern frameworks calculate health deductions as a flat or progressive percentage of gross monthly income, replacing historical fixed-fee scales. Employers must match or process these deductions to ensure employees maintain active medical coverage.
Pension and Housing Levies
  • National Social Security Funds (NSSF): Tiered contributions split between employers and employees to fund mandatory national retirement accounts.
  • Affordable Housing Levies: Mandatory payroll deductions applied as a flat percentage of gross income, matched by the employer, to finance state housing projects.

                 [ Gross Employee Monthly Payroll ]
                                 |
         +-----------------------+-----------------------+
         v                       v                       v
   [ PAYE Deduction ]     [ Health Insurance ]    [ Pension / Housing ]
   Remitted to Treasury   Remitted to Care Fund   Remitted to Trust Funds

 
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