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.
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.
