The required National Social Security Fund (NSSF) contributions were increased by the government in February 2023, from Ksh200 to Ksh500. How Kenyans Can Contribute to the NSSF Using eCitizen & USSD. The government is also moving toward a graded system that would eventually consume up to 6% of Kenyan employees’ earnings.
One year after the government began implementing the NSSF Act, 2013, employers in Kenya were still unclear about the changes and the amount of deductions they would have to impose, even though the government had announced the new rates.
The Act became operative in February 2023 after years of drawn-out legal disputes that began in 2014.
It was the first year that the NSSF deductions would be implemented, after a Court of Appeal decision that authorized the deductions the previous year.
Thus, workers making Ksh6,000 a year contributed Ksh360 to the program, while those making Ksh18,000 and more contributed Ksh1,080, a sum that the company matched.
The Fund examined the deductions that went into effect at the start of February 2024 after the first year ended in January 2024.
As a result, the typical deduction that an employer is permitted to make from an employee’s payslip falls between Ksh420 and Ksh1,740. Based on an employee’s earnings, the NSSF is divided into two categories: Lower Earnings Limit and Upper Earnings Limit.
The lowest pensionable wage, known as the Lower Earnings Limit, was increased from Ksh6,000 to Ksh7,000. Employees in this group will send in Ksh420 instead of Ksh360.
The employer is required to equal the employee’s contribution in each area. Over the course of the next five years, the new fees want to earn Ksh1 trillion.
In compliance with President William Ruto’s demand for all services to be unified on a single platform, NSSF also moved its services to the eCitizen platform.
In light of this, NS News outlines the exact procedure Kenyans might follow to contribute.
Process
Open ecitizen.go.ke and log in.
To access NSSF Services, find “NSSF” under the Agencies area and click on it.
Choose from the “Employer Payment” and “Voluntary Contribution” services.
(An employer’s monthly withdrawal from an employee’s pensionable wages is known as an employer payment; voluntary contributions enable both employers and employees to make retirement savings on their own will).
Enter your NSSF Member Number and choose “Voluntary Contribution” for the Voluntary Contribution Service.
Enter the appropriate payment amount and click “Validate”.
To finalize the purchase, click “Make Payment,” choose your desired payment method, and adhere to the provided instructions.
However, in order to use Employer Payment Service, a Unique Payment Number (UPN) must be generated via the NSSF E-Service site.
Once “Employer Payment” is selected, input UPN.
Choose your desired payment method and adhere to the provided instructions.
How to Make Payments Through USSD
Press *222# to make a voluntary Contribution Service payment, then choose ‘Make Payment.’
A list requesting the submission of the invoice number, service code, airport entry, or KICC entry will be given to you.
To input the NSSFV (the NSSF number for self-employed workers), select Option 2-input Service Code.
Input the Member Number and the desired payment amount.
To verify your payment, choose option 1.
A confirmation SMS will be sent to you once you enter your mobile money PIN.
For Employer Payment Service
Press *222#, then choose ‘Make Payment’.
Choose option 2 to enter the Service Code.
Enter both the Member Number and NSSFE (for employers).
Enter the payment amount.
To verify your payment, choose option 1.
Put in the PIN for mobile money.
Your cell service provider will send you a confirmation SMS.
N/B NSSF will be notified as soon as the money is received.
