MindSight Group Limited

MindSight Group Limited Partnering with businesses to provide new insights, meaningful analytics, and compliance with the law

13/02/2023

World Bank Supports bid to raise NSSF contributions

• The World Bank backed Kenya’s efforts to increase pension contributions by workers to the NSSF. In its 16th Kenya Economic Update, the World Bank noted that enhanced social protection will have a meaningful role in the country’s inclusive growth if, among other policy changes, the NSSF Act is amended to allow for higher contributions to the scheme by workers.
• However, the World Bank wanted these contributions to be protected through stricter regulations covering NSSF’s administrative costs and the facilitation of better returns on pension savings.
• The World Bank wanted the Retirement Benefits Authority (RBA), the regulator, to enforce stricter regulations of administrative costs incurred by NSSF even as the provident fund invests in better business processes to address operational shortcomings.

The National Social Security Fund Act No. 45 of 2013 was assented to by the President of the Republic of Kenya on 24th D...
13/02/2023

The National Social Security Fund Act No. 45 of 2013 was assented to by the President of the Republic of Kenya on 24th December 2013 and came into force on 10th January 2014. The Act establishes that the National Social Security Fund provides Social Security for Workers and Self-Employed Persons and their dependents.
• The Federation of Kenya Employers (FKE), which was seemingly hesitant on the implementation process and time, has now written an advisory to its members to effect the changes starting with the February 2023 payroll.
• The FKE gave its members the go ahead to implement the new NSSF deductions after a consensus between them and the State agency’s board of trustees following the Court of Appeal judgment on February 3, 2023.
• The employers were advised to deduct and remit the said monthly contribution to the fund by 9th day of every month.
• According to the NSSF Act 2013, an employee is expected to contribute 6 per cent of their salaries to the NSSF, another six per cent to be matched by their employer.
• An employee in tier 1 earning Ksh.6,000 per month should be deducted Ksh.360 per month, and their employer to pay a similar amount making it a total of Ksh.720.
• An employee in tier II who is earning Ksh.18,000 and above per month becomes the upper limit of contributions, paying Ksh.1,080, their employer should match up a similar amount to give a total of Ksh.2,160. All these are up from a flat rate of Ksh.200 that all the employees have been paying.

13/02/2023

KENYANS TO START TO PAYING NEW NSSF RATES AT THE END FEBRUARY 2023

Address

Nairobi

Website

Alerts

Be the first to know and let us send you an email when MindSight Group Limited posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Shortcuts

Share

Category