The government implemented the National Social Security Fund (NSSF) Act 2013 after the court lifted orders barring it.
The law proposed a tenfold increase in the NSSF monthly contribution every year after five years.
On October 31, 2024, Kenyans expressed their concerns online as the NSSF sets to roll out the third schedule of the act that will rate increase starting January 2025.
President William Ruto’s administration is expected to implement the third-year schedule of the National Social Security Fund (NSSF) Act 2013.
Why NSSF rates will increase from January 2025?
The schedule, which will take effect from January 2025, will increase the NSSF monthly contributions, currently at KSh 2,160 for tier 2 employees.
In February 2024, NSSF implemented the second-year schedule of the act, increasing the rates by 6%.
This followed the Court of Appeal decision upholding the act, which directed an increase in monthly pension contributions every year for five years.
This caused jitters among members of the public, who took to social media to share their concerns about the increasing rates.
@DerekMwene20880 wrote: “Are you ready for further shake up on your payslips? Tighten up your finances guys, it’s really bumpy ahead.”
@willfozz1 noted: “Now 49% of your payslip gone. Your wallet is getting a workout and your paycheck is shrinking quicker than your weekend hangover. Streets are calling friends. 6% to NSSF by Jan.”
@NHabari1088 said: “Employees continue tightening their belts.”
@JMeshiro15342 claimed: “Just a reminder my fellow Kenyans: 6% to NSSF by Jan, 4% to pension, 2.75% to SHIF, 1.5 % to Housing, 35% to PAYE, Total deductions = 49.25%, Then it all gets stolen!”
@OjaySechero asked: “For what reasons should you get us formal employment?”
@amasha_junior wondered: “Please tell me this is untrue. My People These are The number Of Taxes That Your President has Imposed on your KSh 30,000 Salary.”
@JohnAbdub wrote: “The rise of NSSF deduction by January 2025 to 6%.”
@wayne_gakuo explained: “They’re implementing the increment in phases.”
By Kenyans