TSC New NSSF Deductions Rates for each employment group reviewed.
TSC’s New Commission and NSSF Deduction Rates Teachers and other employees’ pay stubs will be subject to new NSSF deduction rates, which range from Ksh. 420 to Ksh. 1,740.
According to information from an NSSF document, the sum that is now regarded as the lowest pensionable pay has increased from Ksh. 6,000 to Ksh. 7,000.
These employees will now be needed to give Ksh. 360, but from now on, they will be forced to contribute Ksh. 420, per NSSF.
NSSF further indicates that those under Upper Earnings Limit of Ksh.29,000 from the current Ksh.18,000, meaning that most workers’ will contribute a monthly fee of Ksh.1,740 up from Ksh.1,080.
Note that every contribution is expected to be Matched by same contribution by the employer, as has been the case.
Details indicate that the new rates will remain in place until the next review in January 2025.
It is expected that the new deduction plan, that which started last year will gradually see increase in rates over a five-year period.
How New NSSF contributions will affect salary scales for different workers.
Worker Salary scale
The Current contribution
The New contribution(respectively)
- 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
National Social Security Fund (NSSf) plays a key role of ensuring social protection to all workers In Kenya.
The body also ensures provision of social security to workers in the formal and informal sectors.
The body indicated all Employers, starting February 2024 payroll will see new NSSF Contribution deduction Rates for the Second Year as indicated here :
NSSF YEAR 2 CONTRIBUTION RATES, STARTING 2024
New salary deductions in accordance with the Third Schedule of the NSSF Act 2013
- The NSS Lower Limit [Tier 1] 7,000.00
- The Total Contribution by Employee 420.00
- The Total Contribution by Employer 420.00
- Total Tier 1 NSSF Contributions 840.00
- The Upper Limit [Tier 2] 36,000.00
- NSSF Contribution on Upper Limit which is 6% rate of upper Limit less Lower Limit 29,000.00
- Total Contribution by Employee 1,740.00
- Total Contribution by Employer 1,740.00
- The Total Tier 2 NSSF Contributions 3,480.00
- Total NSSF Contributions 4,320.00
In a notice, NSSF directed that the remittances to the Fund should be made by the 9th day of each subsequent month.
It further asked all the employers to reach out to the Fund for any clarification.
TSC New NSSF Deductions Rates for each employment group reviewed.
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