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NSSF Payslip Deductions Starting February 2024

NSSF Payslip Deductions Starting February 2024

NSSF Payslip Deductions Starting February 2024

Beginning February 2024, NSSF will hive off between Ksh.420 and Ksh.1,740 from workers’ pay-slips. A document from NSSF detailing the new rates indicates that the lower earnings limit or the amount that is considered the lowest pensionable salary has been raised to Ksh.7,000 up from the current Ksh.6,000.

This category of employees will now contribute Ksh.420 from the current Ksh.360.

List of new NSSF payslip deductions starting February 2024

Subsequently the Upper Earnings Limit has now been hiked to Ksh.29,000 from the current Ksh.18,000, meaning that most workers’ will contribute Ksh.1,740 up from Ksh.1,080.

Each contribution will be matched by the employer, as has been the case.

The rates will remain in place until the next review in January 2025. The new deduction plan, that began last year, will gradually increase rates over a five-year period.

Below is a notice from NSSF indicating new deductions starting February 2024.

NATIONAL SOCIAL SECURITY FUND

NOTICE TO EMPLOYERS

The National Social Security Fund (NSSf) is a friendly service organization which exists for the public good.

It offers social protection to all workers In Kenya. We provide social security to workers in the formal and informal sectors.

NSSF is mandated to implement the NSSF Act. 2013 and Article 43 of the Kenya Constitution on Economic and Social Rights.

This is therefore to notify all Employers, effective February 2024 payroll. of the NSSF Contribution Rates for the Second Year as indicated below:

YEAR 2 CONTRIBUTION RATES, 2024

In accordance with the Third Schedule of the NSSF Act 2013

Lower Limit [Tier 1] 7,000.00
Total Contribution by Employee 420.00
Total Contribution by Employer 420.00
Total Tier 1 NSSF Contributions 840.00
Upper Limit [Tier 2] 36,000.00
Contribution on Upper Limit (6% of upper Limit less Lower Limit) 29,000.00
Total Contribution by Employee 1,740.00
Total Contribution by Employer 1,740.00
Total Tier 2 NSSF Contributions 3,480.00
Total NSSF Contributions 4,320.00

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 support employers to attain compliance with NSSF Act.

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.

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