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Payroll Release Note for Q2 2026  

This article highlights improvements and new features in our payroll module.

1. Nudge approval (Pension)

What’s New: The previously implemented Nudge Approvers feature for Payroll Updates, Payroll Runs, and Fund Disbursement has now been extended to include Pension Payments. Payroll Administrators can nudge approvers for pending pension approval steps.

When a nudge is sent, approvers receive a notification containing a direct, embedded approval link, enabling them to quickly review and act.

Fig 1

Fig 2


2. Tax Certificate to Exited Employees

What’s New: This feature introduces the ability to deliver tax certificates to both active and exited employees, ensuring broader coverage and accessibility. This covers the countries that send tax certificates to their employees.
  1. Kenya (P9)
  2. Namibia
  3. South Africa
  4. Botswana
The key updates include:
  • Tax certificates are now automatically sent to employees’ company and alternative email addresses
  • Exited employees are included in tax certificate distribution for the relevant tax year.
  • Admins can send tax certificates to external email addresses where employees’ alternative emails are unavailable. This applies only to employees who were employed and had taxable earnings within the selected tax year.

Why It Matters

This enhancement ensures organizations remain compliant with statutory requirements by guaranteeing that all eligible employees, including those who have exited, receive their tax certificates.It also improves the overall employee experience by:

  • Eliminating reliance on company email access after exit
  • Providing flexible delivery options for admins
  • Reducing the risk of missed or delayed tax documentation

Fig 1: Kenya Tax certificate (P9)





Fig 2: Namibia, South Africa and Botswana




3. Pensionable earning as a new basis type (Kenya)

What’s New: We’ve introduced a new deduction basis called Pensionable Earnings, giving you greater control over how statutory deductions (e.g., NSSF) are calculated.

When creating an allowance or extra pay, the system will automatically select the option to include it in Pensionable Earnings. However, admins can deselect this option if they do not want a specific pay item to form part of the pensionable base.With this update, you can now:

  • Select which pay items (allowances and extra pay) should be included in the NSSF deduction basis
  • Easily select or deselect specific pay components based on your organizational or regulatory needs
  • View a clear breakdown of how NSSF is calculated, showing all pay items that make up its basis on the “Show Workings” page

Fig 1: Allowance Creation page



Fig 2: Payroll update (Extra Pay)



Why It Matters:Previously, NSSF was calculated using Computed Gross (all allowances and extra pay), limiting flexibility for defining deduction bases. This update makes payroll more flexible, transparent, and compliant by allowing admins to:

  • Align deductions more closely with local regulatory requirements
  • Ensure greater accuracy in statutory calculations
  • Reduce manual adjustments and reliance on workarounds
For clients who choose not to modify this setup, the system will maintain the default behavior, where all allowances and extra pay are included in Pensionable Earnings, making it equivalent to Computed Gross.


4. Uganda tax table update

What’s New: We’ve updated the Uganda PAYE tax table for resident employees only in line with the latest statutory requirements. The new tax structure introduces revised income bands and rates, which are now automatically applied across: Payroll calculations, Payslips and Tax reports.There are no changes to the tax table for non‑resident employees.

Fig 1: Old Table



Fig 2: New Table



Why It Matters : This update ensures your payroll remains fully compliant with current Ugandan tax regulations, reducing the risk of incorrect PAYE calculations.The updated tax table ensures that;

  • Ensure accurate tax deductions for resident employees
  • Avoid regulatory penalties or audits due to outdated computations

5. Uganda Bonus tax

What’s New: This update enables compliant annualized tax calculation for bonus payments ensuring correct PAYE computation based on Uganda Revenue Authority (URA) guidelines.
  • Introduction of a dual PAYE computation for Uganda:
    • Monthly PAYE Calculation – for regular earnings
    • Annualized PAYE Calculation – for lump sum payments such as: Bonuses. Severance
  • Ability to configure bonus/lump sum categories within payroll.
  • Automated identification and separate taxation of bonus payments.
  • Computation aligned to Uganda Revenue Authority (URA) annualized tax rules, including:
    • YTD income assessment
    • Notional PAYE
    • Allowable deductions
Why It Matters:
  • Uganda uses an annualized tax method for irregular bonus payments.
  • Applying monthly tax tables (current behavior) results in incorrect PAYE deductions.
  • This update ensures:
    • Accurate taxation per URA requirements
    • Transparent separation of monthly and bonus PAYE
    • Proper compliance for bonus payments
How to set up Bonus Pay:
  1. Allowance page



2. Payroll Update Page. The Employees are added to the payroll update step.



ii. Select Extra Pay as the update type, then enter the name and description. Choose the currency, set the basis, and enter the amount.



iii. Ensure that the Extra Pay is set to use Bonus Tax.View Working/Payslip: The bonus pay is displayed as part of the employee's earnings, and the corresponding tax on the bonus pay is also shown.


6 Negative Earning Feature (East Africa)

What’s New: Negative earning was added as a new update type for the following countries; the update type was only available for Kenya clients previously.
  1. Tanzania
  2. Rwanda
  3. Uganda