Following the ruling of the Court of Appeal on the NSSF Act No. 45 of 2013, the NSSF requires all employers to comply with the law with immediate effect.
The rates to be implemented are per the 1st year of the Third Schedule of the NSSF Act No. 45 of 2013 are listed below:
- Both employees and employers contribute 6% each.
- The NSSF Act, 2013 increased salaried employees’ monthly contributions from KSh200 to KSh600 for the lowest earner and from KSh320 to KSh1 080 for top earners. The upper limits on contributions are set to rise every year.
- Workers earning above KSh18 000 are divided into two levels of contributions called tier I and tier II. Tier I contributions is in respect of pensionable earnings up to the lower earnings limit of KSh6 000. Tier II contributions mean contributions in respect of pensionable earnings above the lower earnings limit. See illustrations in the NSSF Public Noticed attached.
The new contributions will be effective February 2023.
Employers are required to remit contributions to the NSSF by the 9th of every month.
Click here to visit the NSSF website.
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Summary: |
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CONTRIBUTIONS |
NSSF Act (No. 45 of 2013) |
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Employee contribution |
6% |
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Employer Contribution |
6% |
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Total contribution |
12% |
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LIMITS |
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Maximum Income |
KShs18 000 |
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Maximum Contribution |
KShs2 160 |
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TIER SPLIT |
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Tier 1 |
Max KShs720 (EE + ER) |
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Tier 2 |
Max KShs1 440 (EE + ER) |
There is not tax file update for this change, however you must review your NSSF contribution Method of Calculation. Should you require assistance with applying any changes, please contact your Sage accredited Business Partner.