Kenyans now have to brace themselves for higher deductions from their pay slips after the National Social Security Fund (NSSF) announced an upward review of monthly contributions.
In a statement, NSSF announced that beginning February 2024, it will increase contributions to Ksh840 for the lower limit deductions.
Ksh420 of that amount will be contributed by employees while the other Ksh420 will be contributed by the employers.
According to NSSF, the new deductions are in line with the implementation of the 3rd Schedule of the NSSF Act Cap45 of 2013.
“NSSF is mandated to implement the NSSF Act, 2013 and Article 43 of the Kenya Constitution on Economic and Social Rights.
“This is therefore to notify all Employers, effective February 2024 payroll, of the NSSF Contribution Rates for the Second Year as indicated,” NSSF stated.
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NSSF Gives Details of the New Deductions
The lower earnings limit or the amount that is considered the lowest pensionable salary has been raised to Ksh7,000 up from the current Ksh6,000.
Subsequently, this has increased deductions from the current Ksh360 to Ksh 420. The employer will match the contributions with Ksh420.
For the upper earnings limit, or the amount that is considered a higher pensionable salary has been raised to Ksh29,000 from the current Ksh18,000.
This means that workers will be deducted Ksh1,740, an increase from the current Ksh1,080. Each contribution will be matched by the employer as well.
Also Read: Govt to Raise NSSF Contributions to KSH 2,160 Per Month
The rates will remain in place until the next review in January 2025.
“Remittances to the Fund should be made by the 9th day of each subsequent month. Employers should not hesitate to reach out to the Fund for any clarification,” added the statement.
Earlier Reports of Deductions that Caused Uproar
Earlier on Tuesday, January 9, NSSF issued a statement denying reports that it would be increasing the monthly reductions to Ksh2,160 from Ksh1,080.
According to the reports that NSSF flagged, the government would start effecting the new deductions that targeted individuals earning above Ksh36,000.
“Please be guided that this is misleading. NSSF has not communicated any deduction progression based on the new rates,
“We shall provide official communication regarding NSSF reductions. Employers and members shall be guided accordingly when the progression period falls due,” NSSF stated.
