The New NSSF Contribution Rates

The court of appeal upheld the decision to implement the National Social Security Fund (NSSF) Act No 45 of 2013, which sought to increase the current fund contribution with immediate effect to cater to employees’ retirement benefits.

The Act has set the contribution at 12% of the pensionable benefits made up of 2 equal contributions of 6% from the employee, and 6% from the employer subject to a set limit of Kshs.2, 160 for employees earning above Kshs.18, 000.

Employers are required to comply with the new NSSF Contribution in their February 2023 payrolls to reflect the changes and those who have already processed their payroll ought to amend the same in compliance with the Act. The returns are due on or before the 9th of the following month and attract a penalty of 5% of the unpaid fund contribution.

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