NSSF Deductions For TSC Teachers February
NSSF Deductions For TSC Teachers February
In a significant development starting February 2024, the National Social Security Fund (NSSF) will implement revised contribution rates, impacting the take-home pay of workers.
The official document from NSSF reveals adjustments to both the lower and upper earnings limits, signaling changes in the amount deducted from employees’ pay-slips.
The lower earnings limit, considered the minimum pensionable salary, has been elevated from Ksh.6,000 to Ksh.7,000. Consequently, employees falling within this category will now contribute Ksh.420, a notable increase from the existing Ksh.360.
Simultaneously, the Upper Earnings Limit has seen a substantial hike, reaching Ksh.29,000 from the previous Ksh.18,000. As a result, most workers will now contribute Ksh.1,740, up from Ksh.1,080. Importantly, these contributions will be mirrored by employers, maintaining the existing practice.
These adjusted rates are slated to remain effective until the subsequent review in January 2025. Notably, the new deduction plan, initiated last year, will be implemented gradually over a five-year period.
Impact on Workers of Different Salary Scales
The following table illustrates how the new NSSF contributions will affect workers across various salary scales, showcasing both the current and new contribution amounts:
| Salary Scale | Current Contribution | New Contribution
| 10,000 | 600 | 600 |
| 18,000 | 1,080 | 1,080 |
| 20,000 | 1,080 | 1,200 |
| 30,000 | 1,080 | 1,800 |
| 36,000 | 1,080 | 2,160 |
| 50,000 | 1,080 | 2,160 |
| 100,000 | 1,080 | 2,160 |
Notice to Employers
In light of these changes, NSSF issues a notice to employers, emphasizing the importance of compliance with the new deduction plan. The National Social Security Fund, as a friendly service organization, plays a crucial role in providing social protection to workers across both formal and informal sectors in Kenya.
The notice highlights the NSSF’s mandate to implement the NSSF Act of 2013 and Article 43 of the Kenya Constitution on Economic and Social Rights. Employers are notified of the NSSF Contribution Rates for the Second Year, effective February 2024, as outlined in the Third Schedule of the NSSF Act 2013.
The contribution rates for both Tier 1 and Tier 2 are detailed, covering lower and upper limits, with specific amounts for both employees and employers. The notice emphasizes that remittances to the Fund should be made by the 9th day of each subsequent month.
Employers are encouraged to seek clarification from the NSSF, with the assurance that the dedicated team is ready to support them in achieving compliance with the NSSF Act. The Fund extends gratitude to employers who have consistently remitted contributions since the operationalization of the NSSF Act in 2013.
