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:
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.
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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