NSSF Contribution Rates
New NSSF Rates to be Applied in Kenya - February 2025
| Year 2 | Year 3 (Starting February 2025) | |
|---|---|---|
| Lower Limit (Tier 1) | 7,000 | 8,000 |
| Total Contribution by Employee | 420 | 480 |
| Total Contribution by Employer | 420 | 480 |
| Total Tier 1 NSSF Contributions | 840 | 960 |
| Upper Limit (Tier 2) | 36,000 | 72,000 |
| Contribution on Upper Limit (6% of Upper Limit less Lower Limit) | 29,000 | 64,000 |
| Total Contribution by Employee | 1,740 | 3,840 |
| Total Contribution by Employer | 1,740 | 3,840 |
| Total Tier 2 NSSF Contributions | 3,480 | 7,680 |
| Total NSSF Contributions | 4,320 | 8,640 |
2025 NSSF Rates
| NSSF Contribution Rates (After 1st February 2025 for salaries up to KES 72,000) |
|---|
| KSh 4,320 |
| Contribution Rate |
After 1st Feb 2024 NSSF Rates
| NSSF Contribution Rates (After 1st February 2024 for salaries up to KES 36,000) |
|---|
| KSh 2,160 |
| Contribution Rate |
Before 1st Feb 2024 NSSF Rates
| NSSF Contribution Rates (before 1st February 2024) |
|---|
| KSh 1,080 |
| Contribution Rate |
Old NSSF Rates
| NSSF Contribution Rates (before 2014) |
|---|
| KSh 200 |
| Contribution Rate |
Background
The National Social Security Fund (NSSF) ACT No. 45 of 2013 has undergone several amendments, introducing increased contribution rates, expanded coverage, and a two-tier contribution system..
Implementation
With the legal confirmation of the Act’s validity, the government is implementing new NSSF contribution rates in a phased approach starting February 2025. Employees and employers will each contribute 6% of the employees Gross/Pensionable earnings, with the new upper limit capped at KES 4,320 for salaries at or above KES 72,000.
New NSSF Rates Effective February 2025
Kenyan employees and employers will see the following changes:
- Lower Limit (Tier 1): Total contribution of KES 960
- Upper Limit (Tier 2): Total contribution of KES 8,640
- Remittance Deadline: Contributions to be submitted by the 9th of each month.
Impact on Employees and Employers
These changes will increase national savings and pension funds but also reduce net pay and increase employer staffing costs.
Get the Latest SHIF Rates
Checkout our Payroll Solution >>
