The National Social Security Fund (NSSF) is set to increase monthly deductions as from 1st July this year, in accordance with the stalled NSSF Act 2013 that is beginning to take shape.
Once implemented, the high income earners will part ways with as much as KSh1,080 monthly. Meanwhile, low income earners will part with KSh360, an equivalent of 12% of the minimum wage (KSh6,000).
According to the fund’s CEO, Antony Omerikwa, the long term goal of the act is to enable them offer workers monthly stipends after their retirement as opposed to the current one-off payment.
Already, discussions around the same are being held with participation from the National Treasury, the Federation of Kenya Employers (FKE) and the Central Organisation of Trade Unions (Cotu).
The deductions have stagnated at KSh200 since 2001, when the rate was increased from KSh160.