Sunday, February 16, 2025
HomeEDUCATIONNSSF Tells Employers to Comply With New Ksh.2,160 Monthly Rates

NSSF Tells Employers to Comply With New Ksh.2,160 Monthly Rates

NSSF Tells Employers to Comply With New Ksh.2,160 Monthly Rates

NSSF Tells Employers to Comply With New Ksh.2,160 Monthly Rates

The National Social Security Fund (NSSF) has issued a call for all employers to comply with the recent court ruling that has allowed for an increase in monthly deductions as outlined by the NSSF Act 2013.

NSSF Chairman Antony Munyiri stated that those employers who have been following the NSSF Act No. 45 of 2013 should continue to do so, while those who have not been following it should start complying.

The new monthly contribution rates will see both the employee and employer contribute a total of Ksh.2,160, an increase from the previous amount of Ksh.200. The recent court ruling came after a prolonged legal battle that had been ongoing since 2014.

Kenya Tea Growers Association and 14 other parties had contested the new law, claiming that the public participation process was not carried out effectively and the senate was not involved in the legislative process.

The appellate court held that the Employment and Labour Relations Court did not have jurisdiction to hear the matter and declared the NSSF Act 2013 legal and constitutional.

The new monthly deductions will have a significant impact on some employees who were previously only required to contribute Ksh.200 every month.

Those earning less than Ksh.15,000 monthly will now be required to contribute Ksh.350 per month, while those earning Ksh.15,000 will be deducted Ksh.900 per month.

Those with a monthly income of Ksh.18,000 and above will be deducted Ksh.1,080, with their employers matching the monthly contributions.

Those earning at least Ksh.50,000 per month will be required to contribute Ksh.3,000, which is a 6% deduction on their monthly income. This will make a total of 12% per month when including the employer’s contribution.

The NSSF board chairman views the new deductions as a significant win for Kenyan workers, allowing them to enhance their savings and secure their financial future, ensuring they can retire with dignity.

The court of appeal decision also boosts President William Ruto’s push for higher retirement savings, with the goal of increasing the savings rate to 25% from the current 12%.

The increase in retirement savings is expected to create a pool of funds that the government can borrow to finance infrastructure development at affordable interest rates and reduce the country’s reliance on expensive foreign debt.

In conclusion, the NSSF Board of Trustees Chairman, Mr. Anthony Munyiri, implies that employers are required to remit the new monthly contribution to the Fund by the 9th of every month.

The NSSF is confident that all employers will comply with the recent court ruling and the new monthly contribution rates, allowing for the implementation of the NSSF Act 2013 and a brighter financial future for Kenyan workers.

NSSF Tells Employers to Comply With New Ksh.2,160 Monthly Rates

Read the full article

RELATED ARTICLES
- Advertisment -

Most Popular

error: Content is protected !!