Information on the New NSSF Act 2013 and Member Contributions

The National Social Security Fund Act No. 45 of 2013 was assented by the President of the Republic of Kenya on 24 December 2013 and came into force on 10th January 2014.

The Act establishes that the National Social Security Fund provides Social Security for Workers and Self Employed Persons and their dependents.

Pursuant thereto, Regulations and Information for the New NSSF Act can be viewed by clicking on the tabs below:

The Official Guide to The National Social Security Act No. 45, 2013

Download the New NSSF Act, 2013 and Returns File Guidelines

New NSSF Rates – Computation Guidelines

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.

Sample Computations are attached below for ease of reference:

Download Sample Computation

New NSSF Act – Employer Obligations

  • That under the new National Social Security Fund (NSSF) Act, every employer who engages one or more employees is required to promptly register with NSSF as a contributing employer
  • Ensure prompt registration of all employees as members of NSSF
  • Promptly deduct and remit contributions in full by the 15th day of the following month. Late payments of mandatory contributions shall attract a penalty at the rate of 5% of the total contributions for each month or part of the month that is remitted late
  • Promptly submit accurate monthly returns in the prescribed format by the 15th day of the following month
  • Maintain proper and up to date records of employees’ earnings and particulars
  • An employer who fails to comply with the above commits an offence

New NSSF Act – Member Obligations

  • That under the new National Social Security Fund (NSSF) Act, every employee upon employment is required to furnish his/ her employer with accurate  personal details
  • Register only ONCE as a member of NSSF
  • Where previously registered, produce his/her membership card as evidence of registration to a new employer
  • Furnish to the Fund and regularly update his/her particulars and their dependents
  • Keep membership card in safe custody

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