According to a document from the National Social Security Fund (NSSF) obtained by Education News Kenya, the new monthly deduction rates for teachers, civil servants, and other workers range from Ksh. 420 to Ksh. 1,740.
The NSSF announcement outlines the revised rates, which include a Ksh. 7,000 increase in the lower earnings limit, the monthly amount considered the lowest pensionable salary.
Previously, the lower earnings limit was Ksh. 6,000. As a result, workers in this category will now contribute Ksh. 420 per month instead of Ksh. 360.
There is also a change for those who fall under the Upper Earnings Limit. This limit will increase from the current Ksh. 18,000 to Ksh. 29,000.
NSSF has since clarified that, similar to the current system, the employer will contribute an equal amount for every employee contribution.
These new rates will be in place until the next review, planned for January 2025. In a time span of five years, the NSSF deduction plan that was put into effect last year is expected to progressively increase its rates.
Contribution Breakdown by Earnings Limit
| Earnings Limit | Previous Limit | New Limit | Employee Contribution | Employer Contribution | Total Contribution |
|---|---|---|---|---|---|
| Lower Earnings | Ksh. 6,000 | Ksh. 7,000 | Ksh. 420 | Ksh. 420 | Ksh. 840 |
| Upper Earnings | Ksh. 18,000 | Ksh. 36,000 | Ksh. 1,740 | Ksh. 1,740 | Ksh. 3,480 |
| Total Monthly Contribution | – | – | – | – | Ksh. 4,320 |
Contribution Schedule by Salary Scale
| Salary Scale (Ksh.) | Previous NSSF Contribution (Ksh.) | New NSSF Contribution (Ksh.) |
|---|---|---|
| 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 |
Year 2 Contribution / Deduction Rates for 2024
| Category | Lower Limit (Tier 1) | Upper Limit (Tier 2) |
|---|---|---|
| Limit | Ksh. 7,000.00 | Ksh. 36,000.00 |
| Employee Contribution | Ksh. 420.00 | Ksh. 1,740.00 |
| Employer Contribution | Ksh. 420.00 | Ksh. 1,740.00 |
| Total Contributions | Ksh. 840.00 | Ksh. 3,480.00 |
| Combined Total Contribution | – | Ksh. 4,320.00 |
Important Notes
- Employer Matching: Employers are required to match the contributions made by employees.
- Remittance Deadline: Contributions should be remitted by the 9th day of each subsequent month.
- Review Schedule: The current rates will be in effect until the next review scheduled for January 2025.
- Increment Plan: The NSSF deduction rates are part of a progressive plan that will see gradual increases over five years.