Starting in February 2024 Kenyans will have to dig deeper into their pockets to pay the new monthly deductions for the National Social Security Fund (NSSF), This follows a review of the deduction by the government.

Currently employees part with Ksh 200 from their pay slips which the employer also matches, however with the implementation of the new charges for the Mandatory contributions Kenyans will pay between Ksh420 and Ksh1,740.

In a notice issued on Friday employers have been informed that the new rates take effect in the February pay roll.

“Remittances to the Fund should be made by the 9th day of each subsequent month. Employers should not hesitate to reach out to the Fund for any clarification. Our team is dedicated to supporting employers to attain compliance with the NSSF Act,” the notice read in part.

“The Fund wishes to thank all those Employers who have continued to remit the contributions of their workers since operationalization of the NSSF Act, 2013.”

The changes are in line with the 3rd Schedule of the NSSF Act Cap45 of 2013, which gradually raises the mandatory pension contributions by employees based on the earning limits.

According to the Revised rate The deductions are determined by two tiers:

Tier 1 represents the lower limit, and Tier 2 denotes the upper limit.

Tier 2 applies to employees earning Ksh18,000 and above, the deductions have been raised to Ksh29,000 from the current Ksh18,000. This implies that workers will be required to pay Ksh1,740, up from Ksh1,080.

whereas Tier 1, defined as the minimum pensionable salary, pertains to those earning less than Ksh18,000.Deductions will be based on the revised lower limit of Ksh7,000, up from the current Ksh6,000. This means that the deductions will go to Ksh420 from Ksh360.

ALSO READ:We created millions of jobs for Kenyans in 2023, says President Ruto