NHIF to SHIF Shift. A Payroll Guide for HR Professionals

The Social Health Insurance Fund (SHIF) is officially here to address gaps in health cover, especially for Kenyans in the informal sector.

The recent green light given by the Court of Appeal for the implementation of the Social Health Insurance Act (SHIA), Primary Health Care Act (PHCA), and Digital Health Act (DHA) marks a pivotal moment in Kenyan healthcare. As organizations gear up to adapt to the changes, this blog post aims to provide HR professionals with valuable insights into the shift from the  National Health Insurance Fund (NHIF) to the Social Health Insurance Fund (SHIF). Additionally, we'll explore the impact on monthly statutory deductions and introduce a streamlined solution for payroll management.

Understanding the Shift

1. The SHIF Mandate:

President William Ruto's flagship project, the Social Health Insurance Fund (SHIF), aims to revolutionize healthcare accessibility in Kenya. This initiative replaces the 57-year-old NHIF and addresses gaps in coverage, particularly for those in the informal sector.

2. Key Suspended Provisions:

While the rollout of SHIF faces legal challenges, certain provisions, such as registration prerequisites for public services and healthcare access based on contribution status, remain suspended until further legal proceedings.
 

3. Contribution Changes:

Under SHIF, the contribution structure undergoes significant adjustments. All workers are now expected to contribute 2.75% of their gross pay towards the health fund, eliminating the previous cap of Sh1,700 for higher earners.

The Payroll Implications

4. Monthly Deduction Breakdown:

Understanding the new deduction rates is crucial for HR professionals. SHIF introduces a progressive system, ensuring affordability and equity. We see adjustments for various income brackets, with a notable shift in deductions for each salary range.

5. ElevateHR Africa Payroll System:

 Implementing these changes seamlessly is imperative. ElevateHR Africa payroll system stands out as a comprehensive solution already equipped to handle the monthly statutory deductions for SHIF. Streamline your payroll processes effortlessly with ElevateHR.

Compliance and Obligations

6. Mandatory Contributions:

 SHIF makes contribution mandatory for all adults seeking government services. Furthermore, it requires foreigners staying for over 12 months to enroll, emphasizing the universal nature of the health insurance scheme.

7. Unemployed Contributors:

   Individuals not employed or classified as vulnerable will now pay a monthly contribution of Sh1,000, a revision from the initially proposed Sh500.

8. Government and UHC Commitments:

The government pledges contributions for vulnerable individuals, and under the Universal Health Coverage (UHC) program, commits to building health facilities to ensure accessibility across the nation.

As organizations brace for the transition from NHIF to SHIF, HR professionals play a pivotal role in implementing these changes seamlessly. ElevateHR Africa's payroll system offers an efficient solution, aligning with the revised statutory deductions. Embrace the shift towards affordable healthcare and equip your organization with the tools needed for a smooth payroll transition.

Explore ElevateHR Africa – Your Partner in Streamlined Payroll Management.