Kenyans will dig deeper into their pockets to pay the new monthly deductions from the National Social Security Fund (NSSF).
On Friday, NSSF informed employers of the new charges which are set to take effect during the February 2024 payroll where Kenyans will have to pay between Ksh420 and Ksh1,740.
This is in line with the 3rd Schedule of the NSSF Act Cap45 of 2013, which gradually raises the mandatory pension contributions by employees based on the earning limits. This is equally matched by the employer.
According to the Act, the deductions will be raised to specific amounts over the first five years. The first year saw mandatory contributions increase from a flat rate of Ksh200 per employee to a graduated plan that will be six percent of an employee’s salary.
The deductions are based on two categories; the lower limit (Tier 1) and the upper limit (Tier 2). The upper earning limit is for employees who are earning above Ksh18,000 and above while the lower earning limit (considered the lowest pensionable salary) is for employees who earn below Ksh18,000.
