Government Announces New NSSF Contribution Rates 2024
Employers are in the dark about the new NSSF contributions, which are scheduled to go into effect in February 2024.
The deductions must be increased to specified amounts throughout the first five years of the law’s implementation.
The National Social Security Fund Act, 2013 Act, which increased required pension contributions from a flat Sh200 per employee with an equal contribution from the employer, was put into effect by the government in February of last year.
In order to avoid fines, employers must be vigilant, keep an eye on the most recent NSSF ratings, and guarantee complete compliance.
The National Social Security Fund Act, Cap 258 of the Kenyan statutes of 1965, governed the remittance of NSSF contributions in Kenya for a certain amount of time.
The contributions that both the employer and the employee were required to make were set at Sh200 under this Act.
Government Announces New NSSF Contribution Rates 2024
However, the National Social Security Fund Act, 2013 was ratified on December 24, 2013, with a January 10, 2014, start date set.
Kenya Plantation and Agricultural Workers’ Union filed a lawsuit in court to contest the constitutionality of a few Act sections prior to the Act’s full implementation.
The parties have reached an agreement to unlock the NSSF Act of 2013 following discussions outside of court.
The government was given permission by the court of appeals to enact a new law in 2023 that raised the NSSF contributions. The law became operative in February of 2023.
For those making less than Sh6,000, there was a lower earnings limit (LEL) and an upper earnings limit (UEL) for those making Sh18,000 or above.
From the current Sh400 to 12% of a worker’s monthly pensionable income (6% from the employee and 6% from the employer, each contributing an equal amount), the monthly matching contributions by employers and employees increased. A worker earning more than Sh18,000 per month could contribute a maximum of Sh2,160.
The bulk of Kenyans would suffer, according to Fred Okango, the secretary for political affairs at KANU.
Government Announces New NSSF Contribution Rates 2024
Raining rates, according to Okango, would push people from a state of self-sufficiency into poverty. He made this claim while speaking on Citizen TV.
“You will discover negative salaries if you examine the paystubs. He asked, “How is this guy going to get kids to school?
This month marks the end of the NSSF Act 2013’s first year of implementation.
