In place of the regular contribution, President William Ruto raised the National Social Security Fund rates to match an individual’s salary.
The maximum and lower income limits will be changed from KSh 36,000 to KSh 72,000 and KSh 7,000 to KSh 8,000, respectively, by NSSF.
Employees taking home KSh 72,000 or more will have KSh 4,320 subtracted from KSh 2,160, while Kenyans making KSh 50,000 per month would contribute KSh 3,000 more than KSh 2,160.
Following the introduction of a new phase of the National Social Security Fund (NSSF) rates, Kenyans’ income is expected to decrease.
In the midst of a difficult economic climate, the new rates, which will take effect in February 2025, will reduce employees’ salary by up to KSh 1,512.
Higher and lower income limitations will be changed by NSSF from KSh 36,000 to KSh 72,000 and KSh 7,000 to KSh 8,000, respectively.
The NSSF Act of 2013 states that the greatest deduction will increase from KSh 2,160 to KSh 3,840, and the lowest payment would increase from KSh 420 to KSh 480.
“For the third year of the NSSF Act of 2013’s implementation, the lower limit earnings will be KSh 8,000, while the higher limit earnings will be two.
The monthly payment for Kenyans making KSh 50,000 will increase from KSh 2,160 to KSh 3,000. This comprises tier I contributions of KSh 480 and tier II contributions of KSh 2,520.
According to Business Daily, KSh 4,320 will be subtracted from KSh 2,160 for employees who take home KSh 72,000 or more.
Due to the requirement that employers match employee contributions, doing business in Kenya will become more expensive.
“An employer shall pay the contribution under subsection (1) on the ninth day of each month or on such later date as the board may, in consultation with the Cabinet secretary, prescribe,” according to the 2013 NSSF Act.
By Newsmedia