NSSF issues notice to employers on new contribution rates
The National Social Security Fund (NSSF) has announced new contribution rates for employers as the implementation of the NSSF Act enters year four.
The National Social Security Fund (NSSF) has announced new contribution rates for employers as the implementation of the NSSF Act enters year four.
In a notice on Tuesday, February 17, NSSF said contribution rates for year three ended on January 31, 2026, paving the way for the fourth phase.
The fund directed all employers to deduct contributions from their employees in line with the new rates.
“The implementation of the NSSF Act is progressively being done in phases. As you are aware, according to the Third Schedule of the NSSF Act Cap 258, the implementation of Year 3 contribution rates ended on 31st January, 2026.
“Implementation of year 4 contribution rates come to effect in February 2026. Consequently, all Employers are hereby notified to make the deductions and pay Year 4 contributions as indicated below,” read the notice in part.
Under the new structure, employees earning Ksh9,000 per month will contribute 6 percent of their salary, capped at Ksh540, with their employers matching the same amount, bringing the maximum Tier I contribution to Ksh1,080.
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Employees earning between Ksh9,000 and Ksh108,000 have been placed under the upper earnings limit (Tier II) category.
Contributions in this category are calculated at 6 percent of the difference between the upper and lower earning limits.
Both the employer and employee will each contribute a maximum of Ksh5,940 under this tier, resulting in a combined maximum Tier II contribution of Ksh11,880.
The overall maximum monthly NSSF contribution per employee under this category will now stand at Ksh12,960 starting February 2026.
Further, NSSF urged employers to ensure all remittances are made by the 9th day of each subsequent month.
The new rates come months after President William Ruto revealed that NSSF has grown from Ksh320 billion to Ksh670 billion under a new contribution model.
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