Sunday, December 1, 2024 - Employed Kenyans are set to receive lower take-home pay as President William Ruto’s government plans to increase National Social Security Fund (NSSF) deductions starting next year.
In the new statutory deduction
that is set to take effect beginning February next year, Kenyans will pay up to
Ksh4320 monthly from Ksh2160 currently contributed by both employees and
employers.
The new regulation is part of the NSSF Act of 2013 which is currently being implemented in phases.
Employed
Kenyans would be deducted 6 per cent of their salaries.
The deduction will be
implemented beginning February 1, 2025, as part of the government’s move to
enhance remittance to the security fund.
According to the Act, the lower
earnings limit or the amount that is considered the lowest pensionable salary
has been raised to Sh9,000 up from the current Sh7,000 while the upper earnings
limit has been raised to Ksh29,000 with this category of employees set to
contribute more money.
For instance, an employee
earning an average wage of Ksh40,000 would take home only Ksh32,000 after all
the statutory deductions such as the Housing Levy, the Social Health Authority,
NSSF, and Pay As You Earn (PAYE).
An employee earning Ksh50,000
will earn a net salary of Ksh38,000 after all the statutory deductions,
similarly an employee earning 70,000 will earn Ksh53,000 after the deductions.
While remitting the funds, the
employer would be required to match the salaries of the employee with the
deduction, simply, it means the deductions would be based on the amount an
individual earns.
The latest development comes
amidst the government's plan to implement several tax measures in the three tax
bills that are currently undergoing public participation.
The Kenyan DAILY POST
Go and Subscribe to our YouTube
Channel and get the best videos around the country, go HERE>>>
0 Comments