What are the current NSSF rates?

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What are the current NSSF rates?

NSSF contribution rates comprise a total of 12% of the employee’s entire pensionable salaries and wages. NSSF monthly rates are divided into two equal parts whereby the employer pays 6%, and the employee pays the remaining 6%.

How much is NSSF monthly contribution?

Employees contributions range from 360 shillings to a maximum of 1080 shillings per month for the first year. Employers will also be contributing an equal amount as yours towards your future. Voluntary contributor: Your minimum monthly contributions are now 200 shillings 100 shillings.

What is the minimum contribution for NSSF?

200 shillings
That under the National Social Security Fund (NSSF) Act, you can make your contributions even if you are not formally employed. Voluntary contributors will remit into the Provident Fund; A minimum of 200 shillings in a month or 4, 800 shilllings in a year.

How are NSSF benefits calculated?

It made the benefits available as a lump sum to members upon retirement. Under the old NSSF Act, the employee and the employer contributed 5% of gross pay each or a sum of Kshs 200 each, every month, or whichever was less.

Is it a must to pay NSSF?

All employers must register with NSSF. Any employer who fails to register with the fund or fails to register their workers within 21 days of employment is guilty of an offence and liable to prosecution in a Court of Law.

Does NSSF have penalties?

In the draft NSSF Bill 2012, the penalty to any person or employer who fails to remit payments due to the fund within the prescribed period shall be liable to a fine not exceeding Sh200,000 or imprisonment for a term not exceeding three years or both.

How is NSSF pension calculated?

Pension benefits shall be calculated as follows: (a) Commuted pension: (1/580 x Number of months contributed Pension formula x Annual Pensionable Emoluments) x 12.5 x 25%. (b) Monthly pension: 1/580 x Number of months contributed x Annual Pensionable Emoluments) x 75% x 1/12.

How do I make contributions to NSSF?

Register as a member: Voluntary If you are in self employment, all you need is to visit any NSSF Office. Your original National Identity Card (ID Card), Alien Card or Passport. You will then pay a minimum amount of Ksh 200, as an initial contribution to activate your card.

How can I withdraw my NSSF money?

Withdrawal Benefit

  1. A certified copy of your retirement letter OR certificate of service OR termination letter.
  2. NSSF Membership Card.
  3. National Identity Card/ Passport/ Alien ID.
  4. Bank details for EFT.

How do you calculate service pay?

Service pay is normally calculated based on the employee’s earnings and the period worked. The standard calculation is 15 days salary for every year worked and in your case it is for three years.

How do I claim NSSF benefits in Kenya?

How to apply: Visit your nearest NSSF office with the following documents:

  1. NSSF Membership Card.
  2. National Identity Card/ Passport/ Alien ID.
  3. A certified copy of your retirement letter OR termination letter on medical grounds.
  4. Medical/treatment report from the hospital you attend(ed).
  5. Bank details for EFT.

Is NSSF taxable in Kenya?

The first kshs. 600,000 benefits paid out of the National Social Security Fund (NSSF)….Employment Tax in Kenya.

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