Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-02-19 07:59:08
In February 2023, the Kenyan government announced an increase in the mandatory National Social Security Fund (NSSF) contributions. The revised rates are part of the government’s plan to transition to a graduated plan that will eventually require up to 6% of Kenyan employees’ salaries to be contributed to the fund. However, one year after the government began implementing the NSSF Act, 2013, there has been confusion among Kenyan employers regarding the changes and the level of deductions they are required to enforce.
Since February 2022, employees earning Ksh6,000 have been contributing Ksh360 towards the scheme, while those earning Ksh18,000 and above have been contributing Ksh1,080, an amount which is matched by the employer. With the expected changes, the average amount an employer can deduct from their workers’ payslips ranges between Ksh420 and Ksh1,740. NSSF is based on two categories depending on an employee’s earnings; Lower Earnings Limit and Upper Earnings Limit.
The Lower Earnings Limit, considered the lowest pensionable salary, was raised from Ksh6,000 to Ksh7,000. In this category, employees will now remit Ksh420, up from the previous Ksh360. On the other hand, the Upper Earnings Limit was also hiked from Ksh18,000 to Ksh29,000, meaning workers will now contribute Ksh1,740, up from Ksh1,080. In each category, an employee’s contribution must be matched by the employer. The new charges aim to raise Ksh1 trillion in the next five years.
In addition to the revised rates, NSSF migrated its services to the eCitizen platform in accordance with President William Ruto’s directive for all services to be consolidated in one platform. As a result, Kenyans have been provided with a step-by-step process through which they can make their contributions.
The process begins with signing in to the eCitizen website and locating “NSSF” in the Agencies section to access NSSF Services, followed by selecting the service “Voluntary Contribution” or “Employer Payment.” The Voluntary Contribution service allows workers and employers to save for retirement voluntarily, whereas the Employer Payment service is for the deductions an employer makes on an employee’s pensionable earnings to the fund each month.
For Voluntary Contribution Service, individuals are required to select “Voluntary Contribution” and enter their NSSF Member Number, followed by validating the amount they are required to pay and making the payment by selecting the preferred Payment Mode. On the other hand, for Employer Payment Service, one will be required to generate a Unique Payment Number (UPN) from the NSSF E-Service portal, enter the UPN, select the preferred Payment Mode, and follow the instructions given.
In addition to making payments through the eCitizen platform, NSSF also offers the option for individuals to make payments through USSD. For Voluntary Contribution Services, individuals need to dial *222# and select ‘Make Payment,’ after which they will be required to enter the invoice number, service code, airport entry, or KICC entry. Similarly, for Employer Payment Services, after dialing *222# and selecting ‘Make Payment,’ individuals need to enter the Service Code, enter NSSFE (for employers) as well as the Member Number, key in the amount to pay, and confirm the payment.
It is important to note that NSSF will receive a notification immediately after the payment is made, ensuring seamless and secure transactions for both employers and workers. This revised contribution process is part of the government’s efforts to ensure financial security for Kenyan employees during their retirement years.
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