NSSF has published new contribution rates for employed individuals with different scenarios of deductions. To understand your deductions, you have to know the tier in which you fall.
NSSF New Contribution Rates
Scenario 1
Employee earning Ksh. 3,000, both the employee and employer contribute Ksh. 180 to the Tier 1 pension, resulting in a total Tier 1 contribution of Ksh. 360. There is no Tier 2 contribution.
Scenario 2:
For an employee earning Ksh. 4,500, the Tier 1 pensionable earnings are Ksh. 4,500. The employee and employer contribute Ksh. 270 each to Tier 1, making the total Tier 1 contribution Ksh. 540. There is no Tier 2 contribution.
Scenario 3:
Employee earning Ksh. 6,000, both the employee and employer contribute Ksh. 360 to the Tier 1 pension, leading to a total Tier 1 contribution of Ksh. 720. There is no Tier 2 contribution.
Scenario 4:
Employee earning Ksh. 7,000, both the employee and employer contribute Ksh. 420 to the Tier 1 pension, resulting in a total Tier 1 contribution of Ksh. 840. There is no Tier 2 contribution.
Scenario 5:
For an employee earning Ksh. 10,000, Ksh. 7,000 of it is considered Tier 1 pensionable earnings. The Tier 1 contributions are Ksh. 420 from the employee and Ksh. 420 from the employer, totaling Ksh. 840. There is a Tier 2 contribution of Ksh. 360 from both the employee and employer, making the total pension contribution Ksh. 1,200.
Scenario 6:
For an employee with a Ksh. 14,000 income, Ksh. 7,000 is Tier 1 pensionable earnings, resulting in Tier 1 contributions of Ksh. 420 from both the employee and employer, totalling Ksh. 840. The Tier 2 contributions are Ksh. 420 from the employee and Ksh. 420 from the employer, making the total pension contribution Ksh. 1,680.
Scenario 7:
Employee earning Ksh. 18,000 income, Ksh. 7,000 is considered Tier 1 pensionable earnings. The Tier 1 contributions are Ksh. 420 from the employee and Ksh. 420 from the employer, totaling Ksh. 840. Additionally, there is a Tier 2 contribution of Ksh. 660 from both the employee and employer, making the total pension contribution Ksh. 2,160.
Scenario 8:
For an employee earning Ksh. 20,000, Ksh. 7,000 is considered Tier 1 pensionable earnings. The Tier 1 contributions are Ksh. 420 from the employee and Ksh. 420 from the employer, totaling Ksh. 840. Additionally, there is a Tier 2 contribution of Ksh. 780 from both the employee and employer, making the total pension contribution Ksh. 2,400.
Scenario 9
Employees earning Ksh. 36,000, Ksh. 7,000 is considered Tier 1 pensionable earnings. The Tier 1 contributions are Ksh. 420 from the employee and Ksh. 420 from the employer, totaling Ksh. 840. Additionally, there is a Tier 2 contribution of Ksh. 1,740 from both the employee and employer, making the total pension contribution Ksh. 4,320.
Scenario 10
For an employee with a Ksh. 100,000 income, Ksh. 36,000 is considered Tier 1 pensionable earnings. The Tier 1 contributions are Ksh. 420 from the employee and Ksh. 420 from the employer, totaling Ksh. 840. Additionally, there is a Tier 2 contribution of Ksh. 1,740 from both the employee and employer, making the total pension contribution Ksh. 4,320.
Scenario 11
In the case of a Ksh. 500,000 income, Ksh. 36,000 is considered Tier 1 pensionable earnings. The Tier 1 contributions are Ksh. 420 from the employee and Ksh. 420 from the employer, totalling Ksh. 840. Additionally, there is a Tier 2 contribution of Ksh. 1,740 from both the employee and employer, making the total pension contribution Ksh. 4,320.
A photo of the table is attached above for quick analysis.
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