# The India Employee Benefits Stack for Kenyan companies

> Kenyan teams are used to three payroll deductions and an employer-insured work-injury policy. In India, EPF replaces NSSF at twice the rate, ESI or voluntary group health cover replaces SHIF, nothing replaces the Housing Levy, and statutory gratuity after five years adds a long-service liability most Kenyan employers do not carry.

By Akshay Golechha, Chief Business Officer at Plum (https://www.linkedin.com/in/akshaygolechha/). Published by Plum (https://www.plumhq.com). Canonical: https://www.plumhq.com/india-benefits-stack/kenya. Updated 2026-10-05. Part of The India Employee Benefits Stack: https://www.plumhq.com/india-benefits-stack.

## In short

- SHIF (2.75% of gross pay, deducted from the employee) is statutory health cover for everyone. India's ESI covers only employees earning up to ₹21,000 a month; above that, employers buy Group Health Insurance, which is voluntary in law.
- NSSF maps to EPF, but EPF is larger: 12% employer plus 12% employee on basic plus DA, against Kenya's 6% each up to KES 108,000 a month. Foreign nationals join EPF from day one on full salary.
- There is no Indian housing levy or SHIF deduction. India's mandatory lump sum is gratuity: 15 days' last drawn salary per year after five years. No India–Kenya social security agreement is in force.

## Questions

### Is there a SHIF equivalent in India?

Only for lower earners. Employees earning up to ₹21,000 a month are covered by ESI, funded by 3.25% from the employer and 0.75% from the employee. Above that line India has no statutory health insurance, so employers buy Group Health Insurance; most insurers need a minimum group of 7, and candidates hired at ₹8 LPA and above expect it.

### How does EPF compare with NSSF?

EPF is larger. Kenya's NSSF takes 6% from each side on pay up to an upper earnings limit of KES 108,000 a month in 2026. India's EPF takes 12% from each side on basic plus DA, with 8.33% of the employer share going to the pension scheme. Foreign nationals contribute on full salary, with no ₹15,000 ceiling.

### Do Kenyan secondees pay EPF in India?

Yes. India and Kenya have no social security agreement, so a Kenyan national employed in India is an International Worker and joins EPF from day one on full salary. International Workers from non-agreement countries can generally withdraw EPF only at 58 or on permanent incapacity, so factor that into assignment terms.

### Is there a housing levy in India?

No. India has no equivalent of Kenya's 1.5% Affordable Housing Levy. Housing support is paid as House Rent Allowance inside salary, and since 21 November 2025, if allowances excluded from wages exceed 50% of total remuneration, the excess is added back into wages for EPF, gratuity and other statutory calculations.

### How is a Kenyan secondee's salary taxed in India?

Work done in India is generally taxable in India, with tax deducted at source by the employer. The India–Kenya tax treaty, in force since 30 August 2017, can exempt short visits under its 183-day and employer conditions. Long secondments can create a permanent establishment for the parent, so structure recharges with a tax advisor.

## What changes when you come from Kenya

### Assignees from Kenya and India's EPF

**The rule.** Foreign nationals employed in India are International Workers under EPF. They must join from day one, with contributions on full salary: the ₹15,000 wage ceiling does not apply.
**Kenya and India.** India and Kenya have no social security agreement. A Kenyan national seconded to India joins EPF from day one on full salary, with no certificate of coverage to claim an exemption, and can generally withdraw it only at 58 or on permanent incapacity. Any NSSF or SHIF contributions that continue in Kenya are an extra cost on top.

### Mapping Kenyan benefits to India

**At home.** SHIF health contributions, NSSF pension contributions in two tiers, the Affordable Housing Levy, a WIBA work-injury policy, 21 working days' annual leave and three months' maternity leave.
**In India.** ESI or Group Health Insurance (GHI) for health, EPF for retirement, the Employees' Compensation Act and Group Personal Accident for injury, and statutory gratuity after five years, funded through an insured scheme.

### Overlap between Nairobi and India

**Time difference.** India is 2½ hours ahead of Nairobi all year (neither country uses daylight saving), so most of the Nairobi working day falls within Indian office hours.
**What to set up.** Agree who in India signs off endorsements, claims escalations and renewals, so nothing waits for headquarters' business hours.

### India–Kenya tax treaty

**Treaty.** India and Kenya have a double taxation avoidance agreement, signed in July 2016 and in force since 30 August 2017. Short visits can be exempt from Indian tax under its 183-day and employer conditions; check the exact article before relying on it.
**Secondments.** Long secondments can create a permanent establishment for the parent. Structure recharges and employment contracts with a tax advisor before staff move.

## What you call it in Kenya, and what it is called in India

Every Kenyan payslip carries three statutory deductions: SHIF at 2.75% of gross pay for health, NSSF at 6% from each side up to the upper earnings limit, and the Affordable Housing Levy at 1.5% from each side. India's provident fund (EPF) is larger, and its health scheme (ESI) stops at ₹21,000 a month. Above that line, health cover is a voluntary employer benefit, and there is no housing levy at all.

| At home in Kenya | In India | What changes for the employer |
| --- | --- | --- |
| Health insurance (SHIF, Social Health Insurance Fund): Statutory health insurance that replaced NHIF in October 2024: 2.75% of gross pay deducted from the employee, minimum KES 300 a month, remitted by the employer. | ESI for employees earning up to ₹21,000 a month; Group Health Insurance (GHI) for everyone else | No deduction above the ESI ceiling, and no statutory cover either. Employers buy GHI, voluntary in law but expected at ₹8 LPA and above. The India median sum insured is ₹5,00,000; global startups in India carry ₹10,00,000. |
| Private medical cover (Staff medical scheme): Optional private inpatient and outpatient insurance that employers buy on top of SHIF. | Group Health Insurance (GHI) | The closest match. GHI is cashless at network hospitals and needs a minimum group of 7 with most insurers. The premium is deductible under Section 36(1)(ib), is not a perquisite under Section 17(2), and carries 18% GST. |
| Pension (NSSF, National Social Security Fund): 6% each from employee and employer: Tier I up to KES 9,000 and Tier II up to KES 108,000 a month since February 2026; maximum KES 6,480 each. | EPF and EPS (Employees' Provident Fund and Pension Scheme) | Twice the rate: 12% employer (8.33% to EPS) and 12% employee on basic plus DA. Indian staff have a ₹15,000 statutory wage ceiling, though most MNC subsidiaries contribute on full basic; foreign nationals pay on full salary from day one. |
| Housing levy (Affordable Housing Levy): 1.5% of gross monthly salary from the employee and 1.5% from the employer, remitted within nine working days after month-end. | None | No housing levy in India. Housing support is paid as House Rent Allowance inside salary; if allowances excluded from wages exceed 50% of total remuneration, the excess is added back into wages for statutory calculations. |
| Work-injury insurance (WIBA, Work Injury Benefits Act): Every employer must hold an approved insurance policy covering its liability for workplace injuries and occupational disease. | Employees' Compensation Act 1923 (or ESI where covered) plus Group Personal Accident (GPA) | Similar logic: outside ESI, the employer is liable under the Employees' Compensation Act and insures it. Group Personal Accident and Group Term Life, often at 3 to 5 times CTC, are the usual voluntary layers. |
| Severance pay: On redundancy, at least 15 days' pay per completed year of service, plus one month's notice or pay in lieu. | Statutory gratuity | A different trigger: Indian gratuity is owed on any exit after five continuous years (one year for fixed-term staff), at 15 days' last drawn salary per year, capped at ₹20 lakh. Provision it from day one and insure it. |
| Annual leave: At least 21 working days with full pay after every 12 consecutive months of service. | Earned leave under the state Shops and Establishments Act, plus casual and sick leave | Typically 12 to 18 days of earned leave plus separate casual and sick leave, set by state law. Public holidays vary by state; only three are national. |
| Sick leave: Seven days on full pay and seven on half pay in each year, after two months' service. | Sick leave under the state Shops and Establishments Act | Set by each state, alongside casual leave, rather than nationally. Check the rules in every state where staff sit. |
| Maternity and paternity leave (Maternity leave): Three months' maternity leave with full pay; fathers get two weeks' paternity leave with full pay. | Maternity Benefit Act: 26 weeks paid by the employer (12 weeks from the third child); no statutory paternity leave | Twice Kenya's three months, paid by the employer (ESI pays for ESI members). A crèche is required at 50+ employees. Set the GHI maternity limit against a normal delivery of about ₹1 lakh and a C-section of about ₹1.25 lakh. |

## What Kenyan companies get wrong when they set up in India

1. **Health insurance is a statutory payroll deduction, like SHIF.** Only employees earning up to ₹21,000 a month are in ESI (0.75% from the employee, 3.25% from the employer). Above that line India has no statutory health cover or deduction. Group Health Insurance is voluntary, but candidates hired at ₹8 LPA and above expect it.
2. **Retirement contributions stop at a low earnings limit, as with NSSF.** EPF is 12% from each side on basic plus DA. The ₹15,000 ceiling applies to Indian staff, but most MNC subsidiaries contribute on full basic, and foreign nationals, Kenyans included, contribute on full salary with no ceiling from day one.
3. **Indian payroll needs a housing levy line.** India has no housing levy. Rent support is paid as House Rent Allowance inside salary. Since 21 November 2025, if allowances excluded from wages exceed 50% of total remuneration, the excess is added back into wages for EPF, gratuity and other statutory calculations.
4. **No long-service payment is due unless we make staff redundant.** Indian gratuity is statutory in establishments with 10+ employees: 15 days' last drawn salary per year of service on any exit after five continuous years, one year for fixed-term staff, capped at ₹20 lakh. Provision it from the first payroll and insure it.
5. **Three months' maternity leave is the benchmark.** The Maternity Benefit Act gives 26 weeks of full pay for the first two children and 12 weeks from the third, paid by the employer (ESI covers it for ESI members). A crèche is required at 50+ employees. India has no statutory paternity leave, unlike Kenya's two weeks.
6. **Kenyan staff posted to India can stay on NSSF alone.** India and Kenya have no social security agreement. A Kenyan national employed in India is an International Worker who joins EPF from day one on full salary, and can generally withdraw it only at 58 or on permanent incapacity.
7. **A medical scheme for the employee alone matches the market.** In India, family cover is what candidates compare, and parents are the largest claims category by relationship, about 40% of claims in Plum's data. The India median sum insured is ₹5,00,000; global startups in India carry ₹10,00,000.

## Kenya vs India, benefit by benefit

| Benefit | Kenya | India |
| --- | --- | --- |
| Statutory health cover | SHIF for everyone: 2.75% of gross pay from the employee, minimum KES 300 a month. | ESI for employees earning up to ₹21,000 a month. Nothing above that line. |
| Employer health cost | No employer SHIF contribution; the employer deducts and remits. | ESI: 3.25% employer below the ceiling. Above it, a voluntary Group Health Insurance premium. |
| Pension | NSSF: 6% each from employer and employee, on pay up to KES 108,000 a month. | EPF and EPS: 12% each from employer and employee on basic plus DA. |
| Maximum pension contribution | KES 6,480 a month each from employer and employee since February 2026. | No cap for International Workers; ₹15,000 wage ceiling for Indian staff, though most MNC subsidiaries contribute on full basic. |
| Housing | Affordable Housing Levy: 1.5% employee plus 1.5% employer on gross pay. | None. |
| Work injury | WIBA: the employer must insure its liability. | Employees' Compensation Act, insured by the employer, or ESI where covered. |
| Long-service payment | Severance on redundancy: at least 15 days' pay per completed year. | Gratuity on any exit after five years: 15 days' last drawn salary per year, capped at ₹20 lakh. |
| Maternity | Three months with full pay. | 26 weeks of full pay for the first two children, paid by the employer. |
| Paternity | Two weeks with full pay. | No statutory paternity leave under central law. |
| Annual leave | At least 21 working days after 12 months' service. | Earned leave of 12 to 18 days plus casual and sick leave, set by state law. |
| Sick leave | Seven days on full pay and seven on half pay a year. | Set by state law, alongside casual leave. |

## Staff seconded from Kenya

Staff seconded from Nairobi often keep a Kenyan private medical scheme that reimburses after treatment. Add them to an India-admitted GHI for cashless care at network hospitals. With no India–Kenya social security agreement, a Kenyan national on Indian payroll joins EPF from day one on full salary and can generally withdraw it only at 58 or on permanent incapacity. Decide in writing whether NSSF and SHIF contributions continue in Kenya.

## Where Kenyan companies set up in India

- **Bengaluru, Karnataka.** Craft Silicon's India offices and Techno Brain's shared services centre. Both software companies are headquartered in Nairobi.
- **Ahmedabad, Gujarat.** Craft Silicon Software Services' second Indian office. Gujarat has long family and trade ties with Kenya.
- **Mumbai, Maharashtra.** Kenya Airways' India gateway, with flights to Nairobi.

Kenyan companies with operations in India include Kenya Airways, Craft Silicon, Techno Brain.

## Benchmarks: what MNCs and GCCs offer in India

From [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits), Plum's report on 15,312 benefit plans, 5,20,100 claims and 74,543 checkups from Plum's FY26 book.

- **1.6×** MNC and GCC benefits spend per employee in India, against a funded Indian startup (nearly 3× a local Indian business). ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **43%** of MNCs and GCCs in India are Holistic Leaders: deep insurance plus real breadth of healthcare beside it. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **₹7,50,000** median MNC/GCC sum insured, covering parents or in-laws, with ₹1,00,000 maternity cover and no copays or sub-limits. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **~2%** of payroll buys India's top-quartile plan, against roughly 15% in the US, 10–25% across Europe and 8–15% across APAC. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3-coverage))

## Further reading on plumhq.com

- [How MNCs structure health insurance for Indian subsidiaries](https://www.plumhq.com/blog/mnc-health-insurance-india-subsidiary-structure): Global programmes, local policies and who signs what.
- [Do you need to match headquarters' benefits in India?](https://www.plumhq.com/blog/gcc-match-headquarters-benefit-standards-india): Where to mirror the parent plan, and where India needs its own design.
- [Insurance for expatriate employees in India](https://www.plumhq.com/blog/insurance-coverage-expatriate-employees-gcc-india): Covering seconded staff alongside the local plan.
- [Group insurance vs ESI: a guide for employers](https://www.plumhq.com/blog/group-insurance-vs-esi-employers-guide): Who must be in ESI, and where group health insurance takes over.
- [How to calculate gratuity in India](https://www.plumhq.com/blog/how-to-calculate-gratuity): Formulas, worked examples and a free calculator.
- [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits): Benchmarks from 4,500+ Indian employee health plans.

Sources: National Social Security Fund: Notice to Employers, Year 4 (2026) NSSF contribution rates, February 2026; Social Health Authority: SHIF premium rates; Kenya Revenue Authority: PAYE, Affordable Housing Levy and SHIF deductibility; Employment Act 2007, sections 28, 29, 30 and 40 (Kenya Law); Work Injury Benefits Act 2007, section 7 (Kenya Law); Income Tax Department of India: India–Kenya Double Taxation Avoidance Agreement, in force 30 August 2017; Company websites: Craft Silicon, Techno Brain, Kenya Airways.