NSSF Clarifies Monthly Deductions Increased From Ksh.200 to Sh.2000
The National Social Security Fund (NSSF) has released a statement explaining why Kenyans should be happy with the recent increase in monthly deductions.
The increase, which was approved by the Court of Appeal, will now see workers pay Ksh2000 instead of Ksh200 each month.
Although this may seem like a significant hit to worker’s pockets, NSSF has reassured the public that this change will benefit them in the long run.
The statement emphasized that the approval of the NSSF Act No. 45 of 2013 by the Court of Appeal is a significant win for all Kenyan workers.
The increased deductions will allow members to enhance their savings and secure their financial future.
NSSF explained that upon reaching retirement age, members will receive the total sum of what they had contributed, which is expected to be more with the higher monthly deductions.
This, according to NSSF, is a way to allow its members to retire with dignity.
It is worth noting that the NSSF Act No. 45 of 2013 was initially declared unconstitutional by the Labour and Status Relations Court in September 2022.
The court argued that the act was in breach of the Constitution as there was no public participation prior to its enactment.
However, NSSF appealed the ruling at the Court of Appeal, where Judges Hannah Okwengu, Mohamed Warsame, and John Mativo okayed the legality of the act.
With the act now approved for implementation, members will now increase their contribution to six per cent of their earnings, with the employer matching the same.
NSSF believes that this change will benefit the workers in the long run and has encouraged them to embrace it with a smile.
In conclusion, although the increase in monthly deductions may seem like a significant financial burden, NSSF has explained that it is a positive change that will benefit the workers in the long run.
The approval of the NSSF Act No. 45 of 2013 by the Court of Appeal has been described as a significant win for all Kenyan workers, and NSSF is confident that the increased deductions will allow members to enhance their savings and secure their financial future.
NSSF Clarifies Monthly Deductions Increased From Ksh.200 to Sh.2000