The National Social Security Fund Act, 2013 (the Act) that was enacted in 2013 increases the level of coverage, range and level of benefits provided by the NSSF, allows for contracting out of making second tier contributions to the NSSF and introduces measures to strengthen the corporate governance of the NSSF.

Contribution Rates
The rates of contribution to the new Pension Fund are at 12% of Pensionable Earnings (split 6% by employees and 6% by employers).
The Pensionable Earnings are defined as all emoluments payable to an employee other than fluctuating emoluments, but subject to a ceiling (called the Upper Earnings Limit).

The total contribution is split into 2 Tiers.
Tier I Contributions are in respect of Pensionable Earnings up to the Lower Earnings Limit.
Tier II Contributions are in respect of Pensionable Earnings between the Lower Earnings Limit and the Upper Earnings Limit.

Note, as of today:
The Lower Earnings Limit is KShs 6,000 per month.
The Upper Earnings Limit is KShs 18,000 per month.

In order to carry out this analysis, please complete the below information.

Kshs
Results:

Your Pensionable Earnings subject to NSSF Contribution is: KShs 0.00

Therefore, your New NSSF Contribution this month will be (6% of your Pensionable Earnings): KShs 0.00

Old NSSF Contribution by Employee New NSSF Contribution by Employee Increase in Contribution
Year 1 200.00 0.00 -200.00

Your New NSSF Contribution this month is broken down into Tier I and Tier II, as follows:

Pensionable Earnings NSSF New Contribution Rate NSSF New Contribution Amount
Tier I 0.00 6.0% 0.00
Tier II 0.00 6.0% 0.00
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