Quick answer
NHIMA’s FAQ states that formal-sector contributions are 1% from the employee and 1% from the employer, based on basic salary. Employers should verify membership details, calculate each side separately and reconcile the schedule to payment.
What matters most
- Use basic salary as the contribution basis according to NHIMA’s published FAQ.
- Show the employee and employer shares separately.
- Validate membership and identity details before filing.
- Check the current NHIMA portal process and deadlines each period.
Calculated on basic salary.
Calculated on basic salary.
Reconcile to the submitted schedule and payment.
Define the payroll basis correctly
NHIMA’s published FAQ describes the formal-sector contribution as 1% of basic salary from the employee and 1% from the employer. Keep basic salary distinct from allowances and gross pay in your payroll configuration.
When salary changes are backdated, document the effective period and confirm how the adjustment should be handled in the current NHIMA process.
Validate member information
Confirm names, NRC details and membership identifiers against the employee’s records. Use a controlled onboarding checklist so employees are not repeatedly omitted while HR waits for missing details.
Keep personal and health-related information restricted. Payroll staff need enough data to process contributions, not unrestricted access to medical information.
Reconcile deductions and employer cost
The employee deduction, employer contribution, total schedule and amount paid should form one traceable chain. Compare the current month with the previous month and investigate new members, leavers and salary movements.
Do not treat the employee deduction alone as the amount payable. The employer share is an additional cost.
Keep the process current
Portal steps, payment references and administrative deadlines may change. Confirm the current NHIMA instructions before submission and retain the acknowledgement and payment evidence.
Employees should be able to see the deduction clearly on their payslip and know where to raise a question.
Working checklist
Employee identity and NHIMA details validated
Basic salary identified separately from allowances
Current contribution rules confirmed
Employee and employer shares reconciled
Submission acknowledgement retained
Payment proof stored with the payroll period
Common mistakes to avoid
- Calculating on gross pay without checking the published basis
- Recording only the employee share
- Sharing medical information with unnecessary users
- Keeping no evidence that a contribution schedule was submitted
Common questions
What is the NHIMA contribution rate for formal-sector employees?
NHIMA’s published FAQ states 1% of basic salary from the employee and 1% from the employer. Confirm the current rule with NHIMA before payroll.
Should NHIMA appear on a payslip?
Showing the employee deduction clearly helps the employee understand net pay and gives payroll a transparent record.
Is the employer share deducted from the employee?
No. The employer share is an additional employer cost; the employee share is the payroll deduction.
Official sources
Rules and online processes can change. Use these primary sources to confirm the current position before acting.
