Teachers and Civil Servants’ New NSSF Deduction Rates by Grade.
According to a National Social Security Fund (NSSF) document, new monthly deduction rates from paystubs for teachers, civil servants, and other workers range from Ksh. 420 to Ksh. 1,740.
The NSSF announcement outlines the structurally altered rates, indicating a Ksh. 7,000 increase in the lower earnings limit, or the monthly sum deemed the lowest pensionable pay.
Because the aforementioned amount was Ksh. 6,000, the employees in that group will now make a monthly payment of Ksh. 420 instead of Ksh. 360.
However, those who fall under the Upper Earnings Limit have also seen changes, with a hike of Ksh. 29, 000 from Ksh. 18,000 as of right now.
As a result, the majority of workers in the aforementioned band will have Ksh. 1,740 deducted from their monthly Ksh. 1,080 salary.
The NSSF states that, similar to the current operation, the employer is required to match each contribution made by the employee.
The updated rates will be in effect until the following review, which is scheduled for January 2025.
Over the course of five years, it is anticipated that the current NSSF deduction plan, which went into force last year, will progressively raise its rates.
fresh contributions from NSSF Rates affecting employees on various pay schemes
It is anticipated that all employers will release matching contributions, in the same manner that employees do.
Monthly Salary scale | Previous NSSFcontribution | New NSSF contribution |
10,000 | 600 | 600 |
18,000 | 1,080 | 1,080 |
20,000 | 1,080 | 1,200 |
30,000 | 1,080 | 1,800 |
36,000 | 1,080 | 2,160 |
50,000 | 1,080 | 2,160 |
100,000 | 1,080 | 2,160 |
Here is the additional NSSF indicating new deductions starting February 2024 based on a notice to all Employers, starting February 2024 payroll.
This is the new NSSF Contribution Rates for the Second Year, 2024 rates
YEAR 2 CONTRIBUTION /DEDUCTION RATES, 2024
The deduction is made in accordance with the Third Schedule of the NSSF Act 2013
Lower Limit under [Tier 1] | 7,000.00 |
Total NSSF Contribution by Employee | 420.00 |
Total NSSF Contribution by Employer | 420.00 |
Total Tier 1 Contributions | 840.00 |
Upper Limit under [Tier 2] | 36,000.00 |
NSSF Contribution on Upper Limit (it is 6% of upper Limit less Lower nssf Limit) | 29,000.00 |
Total NSSF Contribution by Employee | 1,740.00 |
Total NSSF Contribution by Employer | 1,740.00 |
Total Tier 2 Contributions | 3,480.00 |
NSSF Total Contributions | 4,320.00 |
Note that according to the NSSF, the Remittances of the Fund should be made by the 9th day of each subsequent month regularly.
Teachers and Civil Servants’ New NSSF Deduction Rates by Grade.
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