Sharp Daily
No Result
View All Result
Tuesday, July 1, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Payrolls to take a bigger dip as NSSF hikes contribution rates

Brian Murimi by Brian Murimi
January 12, 2024
in News
Reading Time: 1 min read

The National Social Security Fund (NSSF) has disclosed its intention to augment contribution rates for workers and employers in Kenya starting February 9th, 2024.

Functioning as a government-operated pension scheme, the NSSF plays a crucial role in providing retirement benefits and social security to the workforce of Kenya.

The adjusted rates are in alignment with the provisions outlined in the 3rd Schedule of the NSSF Act Cap 45 of 2013.

As per the NSSF notice to all employers, the contribution rates will be stratified into two tiers. In Tier I, predicated on the revised lower limit of KES 7,000 (an increase from the existing KES 6,000), workers will now be obliged to remit KES 420 (up from KES 360), with employers matching this amount. This tier encompasses all individuals earning up to Kes 7,000 monthly.

RELATEDPOSTS

Still sending tier II contributions to NSSF by default? Time to reconsider.

June 13, 2025

Atwoli defends NSSF contributions amid political debate

February 5, 2025

Under Tier II, contingent on the updated upper limit of 1x the national average wage (a rise from the existing 0.5x), employees will need to contribute KES 1,740 (escalated from KES 720), matched by employers. This tier encompasses individuals earning above KES 7,000 monthly.

Encouragingly, Tier 2 deductions will persist in being based on the national average wage reported in 2013/14. This approach, as opposed to utilizing current figures, mitigates the potential for even higher Tier 2 contributions.

The NSSF has communicated that these revised rates aim to ensure increased contributions from both workers and employers, consequently leading to enhanced benefits from the fund.

Furthermore, the NSSF has strongly advised employers to adhere to the new rates and timely remit the contributions to avoid incurring penalties and interest charges.

While the adjustments translate to larger deductions for both companies and employees, the NSSF emphasizes that these changes are geared towards fortifying retirement benefits in the long run.

Previous Post

Innovations shaping Kenya’s marine insurance sector

Next Post

CDF Ogolla, IG Koome visit Baringo amid operation maliza uhalifu

Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

Related Posts

News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025

LATEST STORIES

Private vs Public Pension Funds in Kenya

June 30, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024