Below is the procedure of calculating NSSF contributions in Kenya
For the purposes of the Act, the Upper Earning Limit (UEL) will be KES. 18,000 while the Lower Earnings Limit (LEL) will be KES 6,000. The pension contribution will be 12% of the pensionable wages made up of two equal portions of 6% from the employee and 6% from the employer subject to an upper limit of KES 2,160 for employees earning above KES 18,000.
The employee contribution shall be drawn directly from his salary and wages while the employers contribution shall come directly from the employer.
The contributions relating to the earnings below the LEL of the earnings (a maximum of KES. 720) will be credited to what will be known as a Tier I account while the balance of the contribution for earnings between the LEL and the UEL (up to a maximum of KES 1,440) will be credited to what will be known as a Tier II account.
Sample Computations are attached below for ease of reference:
New NSSF Act – Employer Obligations
- That under the new National Social Security Fund (NSSF) Act, every employee upon employment is required to furnish his/ her employer with accurate personal details
- Register only ONCE as a member of NSSF
- Where previously registered, produce his/her membership card as evidence of registration to a new employer
- Furnish to the Fund and regularly update his/her particulars and their dependents
- Keep membership card in safe custody