NSSF monthly rate to increase fivefold in new pensions plan
Workers erecting a new signboard on the National Social Security Fund. A new pension Bill proposes a substantial increase in the workers’ monthly contributions to the fund. The Bill seeking to upgrade NSSF from a provident fund to a pension scheme proposes that all workers pay at least 12 per cent of their gross salaries which will be equally split between the worker and the employer.
Workers will see their contribution to the National Social Security Fund (NSSF) increase five times in the first year of the new old-age benefits regime if the revised pension Bill passes into law. But to ease the burden on the workers the State has decided to stagger the payment over a period of five years in what will see top earners pay more than Sh10,000 monthly with their employers topping an equivalent amount in the fifth year.
In the first year, the government has capped the 12 per cent charge on half the national average monthly income of Sh36,000 last year, which means that NSSF will recover a maximum of Sh2, 160 monthly. The top earners will pay half the charge at Sh1, 080, up from the current Sh200, while the low earning Kenyans will be deducted Sh360 or 12 per cent of the minimum wage that has been set at Sh6, 000 under a graduated scale meant to alleviate poverty among senior citizens.... Read the full, comprehensive news article and discuss at Business Daily AfricaSimilar Stories