|FEBRUARY 2024 – KENYA
NEW NSSF RATES EFFECTIVE FEBRUARY 2024
It is important that employers note the following:
National Social Security Fund (NSSF) notice to employers
The NSSF recently issued a notice to employers detailing adjustments being made in the second year of implementation of the revised Tier 1 and Tier 2 NSSF contributions.
Under the revised NSSF contributions, a total of 12% of the pensionable income will be remitted to NSSF, with the employer and employee making equal contributions.
The rates to be implemented, as per the second year of the Third Schedule of the NSSF Act, are:
|The Third Schedule of the NSSF Act stipulates the following:
1. “The lower earnings limit and the upper earnings limit shall, for the first four years after the commencement date, be in accordance with the Table contained in this Schedule.
2. After the fourth year and thereafter –
(a) the Lower Earnings Limit shall be, for each financial year, the amount gazetted by the Cabinet Secretary from time to time as the average statutory minimum monthly basic wage for the top urban centres, second tier urban centres and rural areas for the year; and
(b) the Upper Earnings Limit shall, for each financial year, be the level of earnings equal to four times National Average Earnings”.
Table defining progression of rates of contributions
|If you are interested in more information regarding the history of the NSSF Act, feel free to view our News Flash of 15 February 2023.
To view the NSSF notice to employers, follow the link.
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