The National Social Security Fund (NSSF) contribution rates are set to go up with effect from 1st February 2025. These updates are part of a phased approach aimed at enhancing retirement savings and expanding social security coverage for Kenyan workers. Employers should therefore implement the changes to ensure they are compliant with the provisions of the NSSF Act 2013.
The employee will contribute 6% of his or her salary and the Employer will match the contribution by 6 % of the employee’s earnings
Key Changes to Contribution Limits are as follows:
- Increase in Pensionable Earnings Limits:
- Lower Earnings Limit (LEL): Adjusted from KSh 7,000 to KSh 8,000.
- Upper Earnings Limit (UEL): Increased from KSh 36,000 to KSh 72,000.
The impact of these changes are:
- The minimum contribution for employees will increase from KSh 420 to KSh 480.
- Employees earning KSh 72,000 or more will now contribute KSh 4,320, up from KSh 2,160.
Please refer to the simulation below for persons earning Kshs 35,000, KShs 50,000 and KShs 75,000.
| JAN-25 | ||||
| Gross Pay | 75,000.00 | 50,000.00 | 35,000.00 | |
| Deductions: | ||||
| PAYE | 13,279.11 | 6,097.86 | 1,853.13 | |
| NSSF | 2,160.00 | 2,160.00 | 2,100.00 | |
| SHIF | 2,062.50 | 1,375.00 | 962.50 | |
| Housing Levy | 1,125.00 | 750.00 | 525.00 | |
| Total Deductions | 18,626.61 | 10,382.86 | 5,440.63 | |
| Net Pay | 56,373.39 | 39,617.14 | 29,559.37 | |
| FEB 2025 | |||
| Gross Pay | 75,000.00 | 50,000.00 | 35,000.00 |
| Deductions: | |||
| PAYE | 12,630.95 | 5845.85 | 1853.13 |
| NSSF | 4,320.00 | 3,000.00 | 2,100.00 |
| SHIF | 2,063.00 | 1375.00 | 962.50 |
| Housing Levy | 1,125.00 | 750.00 | 525.00 |
| Total Deductions | 20,138.95 | 10,970.85 | 5440.63 |
| Net Pay | 54,861.05 | 39,029.15 | 29559.37 |
| Variance | 1,512.34 | 587.99 | – |