💡 Quick Answer:
Under the NSSF Act 2022, employees and employers each contribute 6% of the employee’s salary, subject to minimum and maximum limits.
The contributions are paid to the National Social Security Fund to support retirement savings.
Imagine This
You earn KSh 40,000 per month.
Under the new NSSF rules:
- You contribute 6% of your salary
- Your employer also contributes 6%
This means both you and your employer contribute to your retirement savings.
How the NSSF Contributions Work
The new NSSF system divides contributions into two tiers.
| Tier | Salary Range | Contribution Rate |
| Tier I | Lower salary band | 6% |
| Tier II | Higher salary band | 6% |
Both the employee and employer contribute the same percentage.
Minimum Contribution
The minimum contribution applies to lower income levels.
Example:
| Contribution | Amount |
| Employee | KSh 420 |
| Employer | KSh 420 |
| Total | KSh 840 |
This applies to employees earning below a certain threshold.
Maximum Contribution
For higher salaries, contributions are capped.
Example:
| Contribution | Amount |
| Employee | KSh 2,160 |
| Employer | KSh 2,160 |
| Total | KSh 4,320 |
This means the maximum monthly contribution combined is KSh 4,320.
Example Calculation
If someone earns:
💰 KSh 50,000 per month
The contributions would be:
| Contributor | Amount |
| Employee | KSh 2,160 |
| Employer | KSh 2,160 |
| Total Monthly Contribution | KSh 4,320 |
These funds go toward the employee’s retirement benefits.
Why NSSF Contributions Matter
NSSF contributions help individuals:
✔ build retirement savings
✔ receive pension benefits later in life
✔ access social security benefits
The system encourages workers to save for retirement.
Who Must Contribute?
NSSF contributions apply to:
✔ employees in formal employment
✔ employers who must deduct contributions from salaries
Self-employed individuals can also make voluntary contributions.
Frequently Asked Questions
Is NSSF mandatory in Kenya?
Yes. Employers are required to register employees and make contributions.
Can self-employed people contribute?
Yes. Self-employed individuals can register and contribute voluntarily.
What happens to the money?
The contributions are invested by NSSF and paid out as retirement benefits.
Final Thoughts
The NSSF Act 2022 increased contributions to help workers build stronger retirement savings.
By contributing a percentage of income together with employers, employees gradually build funds that support them after retirement.
Quick Tip
Regularly check your NSSF statements to confirm that your employer is submitting the correct contributions.
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