FEBRUARY 2025 – KENYA
NSSF CONTRIBUTION LIMITS
It is important that employers note the following:
NSSF contribution limits adjusted for 2025
In line with Schedule 3 of the NSSF Act No. 45 of 2013, which stipulates annual increases to contribution limits, the National Social Security Fund (NSSF) is set to implement the next phase of its contribution schedule. As of 1 February 2025, NSSF will move to year three of the implementation plan.
The Tier 1 NSSF contribution threshold will rise from KES 7,000 to KES 8,000. As a result, employees earning up to KES 8,000 will now contribute based on this higher limit.
For Tier 2 NSSF contributions, which apply to higher-income earners, the contributable earnings will increase significantly from KES 36,000 to KES 72,000.
The rates to be implemented, as per the third year of the Third Schedule of the NSSF Act, are:
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.
To view the NSSF Act No. 45 of 2013, follow the To view the Government Gazette, follow the link.
PLEASE NOTE
The implementation of this change requires an update of the payroll system parameters. If not done, you may incur penalties and interest. If you are unsure of how to make the change, please contact your consultant for assistance.
