New NSSF Contribution Rates

COMPUTATION GUIDELINES

For the purposes of the Act, the Upper Earning Limit (UEL) will be KES. 18,000 while the Lower Earnings Limit (LEL) will be KES 6,000. The pension contribution will be 12% of the pensionable wages made up of two equal portions of 6% from the employee and 6% from the employer subject to an upper limit of KES 2,160 for employees earning above KES 18,000.

The employee contribution shall be drawn directly from his salary and wages while the employers contribution shall come directly from the employer. The contributions relating to the earnings below the LEL of the earnings (a maximum of KES. 720) will be credited to what will be known as a Tier I account while the balance of the contribution for earnings between the LEL and the UEL (up to a maximum of KES 1,440) will be credited to what will be known as a Tier II account.

Conversion Table

Employee Earnings Pensionable Earnings TI Pensionable Earnings TI Employee Deduction TI Employer Contribution Total TII Pensionable Earnings TII Employee Deduction TII Employer Contribution Total Total Pension Contribution
1 3,000 3,000 3,000 180 180 360         360
2 4,500 4,500 4,500 270 270 540         540
3 6,000 6,000 6,000 360 360 720         720
4 10,000 10,000 6,000 360 360 720 4,000 240 240 480 1,200
5 14,000 14,000 6,000 360 360 720 8,000 480 480 960 1,680
6 18,000 18,000 6,000 360 360 720 12,000 720 720 1,440 2,160
7 20,000 18,000 6,000 360 360 720 12,000 720 720 1,440 2,160
8 100,000 18,000 6,000 360 360 720 12,000 720 720 1,440 2,160
9 500,000 18,000 6,000 360 360 720 12,000 720 720 1,440 2,160

Source:https://www.nssf.or.ke