Kenya NSSF New Rates Calculator (2024)
Calculate Tier I and Tier II pension contributions based on the NSSF Act
Contribution Breakdown
| Tier I Contribution (Up to KES 7,000) | 0.00 |
| Tier II Contribution (Above KES 7,000) | 0.00 |
| Total Employee Deduction | 0.00 |
| Employer Matching Contribution | 0.00 |
| Total NSSF Monthly Credit | 0.00 |
*Calculations based on 2024 Upper Earnings Limit (UEL) of KES 36,000 and Lower Earnings Limit (LEL) of KES 7,000.
Understanding the New NSSF Rates in Kenya
The National Social Security Fund (NSSF) Act of 2013 introduced a tiered contribution system designed to enhance retirement savings for Kenyan workers. As of February 2024, the second year of the phased implementation has moved the salary caps higher, affecting both employees and employers.
How the Tiered System Works
The contribution is split into two distinct categories based on your pensionable earnings:
- Tier I: This is calculated at 6% of the Lower Earnings Limit (LEL). For 2024, the LEL is set at KES 7,000. The maximum Tier I contribution is KES 420.
- Tier II: This is calculated at 6% of the portion of your salary above the LEL, up to the Upper Earnings Limit (UEL). For 2024, the UEL is KES 36,000. The maximum Tier II contribution is KES 1,740.
NSSF Calculation Example
If an employee earns a gross salary of KES 50,000:
- Tier I: 6% of the first KES 7,000 = KES 420.
- Tier II: The UEL is KES 36,000. The difference between UEL and LEL is KES 29,000 (36,000 – 7,000). 6% of KES 29,000 = KES 1,740.
- Total Employee Deduction: 420 + 1,740 = KES 2,160.
- Employer Contribution: The employer matches this amount (KES 2,160).
- Total Fund Credit: KES 4,320 per month.
Who is Affected?
All employees in both the formal and informal sectors are required to contribute. For those earning below the UEL, the contribution is exactly 6% of their gross pay. For those earning above KES 36,000, the contribution is capped at the maximum rate of KES 2,160 for the employee.