New NSSF ACT 2013




The NSSF ACT 2013 comes into effect from June 1st 2014.

There is a raise in NSSF contributions from a maximum of KShs 200 to the new rate of 6%. However, the act has allowed for a transitional period building up to the 6%.
For users of wingubox ™ payroll, these changes have been effected automatically for you. You may view the new formula by going to:

  • On the main menu:
  • “Payroll Settings”->”Deductions”->”Other deduction formulae”
  • Select NSSF and view the new formula

You’ll notice it is possible to switch between the old NSSF rates and the new ones for purposes of processing pay slips pre-2014.

Below is a table guide that will demonstrate your transitional payments.

This table is based on NSSF act 2013 and Deloitte Kenya interpretation notes.

NSSF act (2013) Rates projected over the next 4 years

  2014 2015 2016 2017
Lower Earnings Limit 6,000.00 7,000.00 8,000.00 9,000.00
Upper Earnings Limit (50% of NAE)
 
(1 x NAE)
 
(2 x NAE)
 
(3 x NAE)
 
 
Tier 1 Salary        
Tier 2 Salary        
 
Tier 1 contribution        
Tier 2 contribution        
Total contribution        
 
Effective contribution        

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