Check Your Payslip: NSSF Explains How Much Should Be Deducted From Your Monthly Salary

The National Social Security Fund (NSSF) has explained how monthly pension contributions are calculated, giving Kenyan employees a breakdown they can use to establish whether the deductions appearing on their payslips are correct.

The explanation provides a guide to how much workers should contribute based on their monthly pensionable earnings and the amount their employers are required to add to their retirement savings.

Under the current two-tier contribution structure, both employees and employers contribute 6% of an employee’s pensionable earnings, subject to the applicable limits.

The first category, known as Tier I, covers the initial KSh 9,000 of an employee’s monthly pensionable salary. At a contribution rate of 6%, this translates to KSh 540 from the employee and an additional KSh 540 from the employer.

Tier II applies to earnings above KSh 9,000, up to a maximum pensionable income of KSh 108,000. The same 6% contribution rate applies to this portion of the salary.

For instance, NSSF provided an illustration involving an employee earning KSh 30,000 per month.

In this case, the first KSh 9,000 attracts a contribution of KSh 540 under Tier I. The remaining KSh 21,000 falls under Tier II, resulting in another KSh 1,260. This brings the employee’s total monthly NSSF deduction to KSh 1,800.

The employer is also required to contribute an equivalent KSh 1,800, bringing the total amount deposited into the employee’s NSSF account to KSh 3,600 every month.

Workers earning more than KSh 108,000 in pensionable income do not pay additional contributions on earnings exceeding that ceiling.

Employees can therefore check their payslips by calculating 6% of the first KSh 9,000 and adding 6% of the remaining pensionable earnings, subject to the KSh 108,000 limit.

Beyond understanding monthly deductions, employees are encouraged to regularly review their NSSF statements to establish whether their employers are remitting the required contributions.

Workers can check their NSSF balances through available channels, including USSD services, WhatsApp, the NSSF Self-Service Portal and the mobile application.

Checking these records regularly can help employees identify missing contributions or delays in remittances by their employers.

Unremitted contributions may affect the savings accumulated towards retirement, making it important for workers to confirm that the deductions appearing on their payslips are actually reaching their NSSF accounts.

https://www.tuko.co.ke/business-economy/economy/646244-how-calculate-monthly-nssf-deductions-check-contributions/?fbclid=IwZXh0bgNhZW0CMTEAcGRvZgNzcnRjBmFwcF9pZA8yNzUyNTQ2OTI1OTgyNzkAAR-UWKfrJbZA3SOH8fGz6faJ_t8CcTit2IBnIANuweE3KLFnzfkRlx17uBXJYQ_aem_rLQw1hwIFLSpqUf0vpLD8w

Antoblog feedback-opera-news-app@opera.com