Kenyan employees to face higher NSSF deductions beginning February
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The government to introduce higher NSSF deductions beginning in February for the employees and employers
The government to introduce higher NSSF deductions beginning in February for the employees and employers.
Kenyan employees and employers will have to brace for higher National Social Security Fund (NSSF) deductions starting next month.
The NSSF will deduct between Ksh. 420 and Ksh. 1,740 from employees’ pay slips starting in February.
The lower earnings limit, or the amount deemed to be the lowest pensionable pay, has increased to Ksh. 7,000 from Ksh. 6,000 as per the revised rates.
This category of employees will now contribute Ksh.420 from the current Ksh.360.
The Upper Earnings Limit was subsequently raised from Ksh. 18,000 to Ksh. 29,000, which means that most employees will now contribute Ksh. 1,740 instead of Ksh. 1,080.
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Each contribution will be matched by the employer, as has been the case.
The NSSF rates will remain in place until the next review in January 2025.
The new deduction plan, which began last year, will gradually increase rates over a five-year period.
This shift began in 2013 when the NSSF ACT came into play, requiring six percent of workers’ salaries be deducted each month.
For the lower earnings limit, from the fifth year, the Labour CS would gazette the new rates based on what the minimum monthly wage will be at the time.
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