In accordance with Schedule 3 of the NSSF Act No. 45 of 2013, the contribution limits are subject to annual increases. As of February 2025, NSSF will progress to Year 3 of the implementation schedule.
Effective February 2025, the NSSF lower limit will increase from Ksh 7,000 to Ksh 8,000 and the upper limit will increase from Ksh 36,000 to Ksh 72,000. Therefore, the maximum NSSF contribution rates for the third year are as follows:
Lower Limit (Tier1) | Ksh 8,000.00 |
Total Contribution by Employee (6%) | Ksh 480.00 |
Total Contribution by Employer (6%) | Ksh 480.00 |
Total Tier 1 NSSF Contributions | Ksh 960.00 |
Upper Limit (Tier2) | Ksh 72,000.00 |
Contribution on Upper Limit: 6% of Upper Limit Less Lower Limit | Ksh 64,000.00 |
Total Contribution by Employee (6%) | Ksh 3,840.00 |
Total Contribution by Employer (6%) | Ksh 3,840.00 |
Total Tier 2 NSSF Contributions | Ksh 7,680.00 |
Total NSSF Contributions | Ksh 8,640.00 |
Therefore, the maximum NSSF contributions from February 2025 will be:
Example A: Employee earns a salary of Ksh 50,000
Category (Tier 1 & Tier 2) | Salary | NSSF Employee Contribution |
Lower limit | Ksh 8,000 | Ksh 480 |
Upper limit (72k) | Ksh 42,000 (50,000 - 8,000) | Ksh 2,520 |
Total | Ksh 50,000 | Ksh 3,000 |
*The employer will have the same NSSF contribution total of Ksh 3,000 (Tier 1 and Tier 2)
Example B: Employee earns a salary of Ksh 80,000
Category (Tier 1 & Tier 2) | Salary | NSSF Employee Contribution |
Lower limit | Ksh 8,000 | Ksh 480 |
Upper limit (72k) | Ksh 64,000 (72,000 - 8,000) | Ksh 3,840 |
Total | Ksh 50,000 | Ksh 4,320 |
*The employer will have the same NSSF contribution total of Ksh 4,320 (Tier 1 and Tier 2)