Tier I - up to 10 Employees
Tier II - up to 20 Employees
Tier III - up to 50 Employees
Tier IV - up to 200 Employees
New NSSF Rates to be Applied in Kenya - February 2025
The WinguApps Payroll software solution also integrates to KRA's iTax system by producing the required iTax P10 file in the import csv format.
The WinguApps Payroll solution also integrates to NHIF by generating employers monthly payroll byproducts to NHIF via the online Byproduct system.
The WinguApps Payroll solution will also generate the monthly NSSF Payroll Template in the required format by the SF24 Management system.
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..
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.
Kenyan employees and employers will see the following changes:
These changes will increase national savings and pension funds but also reduce net pay and increase employer staffing costs.
Below are the New and Old NSSF Contribution Rates:
Typical questions asked regarding the recently implemented NSSF Rates
The new NSSF rates take effect in February 2025. Employees will contribute 6% of their pensionable earnings, matched by employers. Contributions are categorized into two tiers:
The pensionable salary is based on the employee’s gross earnings, with a lower limit (Tier 1) and an upper limit (Tier 2).
Employees earning less than KES 8,000 will only contribute to Tier 1, meaning their total NSSF contribution will be KES 960 (KES 480 from the employee and KES 480 from the employer).
Employers must submit NSSF contributions by the 9th of every month to avoid penalties.
Employers must match employee contributions. This increases the total payroll cost but helps employees build stronger retirement savings.
WinguApps provides an automated payroll solution that calculates NSSF contributions based on the latest rates, ensuring compliance and accuracy.
Yes, since employees contribute 6% of their pensionable earnings, their net salary will decrease. However, this contribution secures better retirement benefits.
Non-compliance may result in penalties and fines imposed by NSSF.
Yes, voluntary contributions are allowed, but the statutory deductions remain fixed as per the new rates.
Drop us a note and we’ll get back to you...
Learn the step-by-step process of registering for the Social Health Insurance Fund (SHIF) in Kenya.
Starting from KES 20,000
The payroll very effective, reliable and easy to manage employees details and disbursement. Less Laborious.
The Payroll has helped us synchronize our sales commissions effectively and accurately from the Point of Sale Module.
If I'd be asked to describe this software in just three words....Reliable, Efficient and 24/7 support service.
We are available 24 Hrs round the clock to help you with any information or resources you may need. Feel free to reach out.
Questions about our product or pricing? Call for support
Our support will help you anytime 24hrs / 7days
