Increased NSSF deductions take effect end-month
20 January 2014, 11:35
Nairobi - Employers are set to effect the increased rates of workers contributions to the National Social Security Fund (NSSF).
President Uhuru Kenyatta signed the NSSF bill in December last year, and according to Labour Cabinet Secretary, employers should start making the deductions from the end of this month (January), Daily Nation reports.
The implementation of the new rules will be spread in five years. In the first year, workers and their employers will contribute 1.2 per cent of the pensionable income, which will increase to 2.4 per cent in the second year, 3.6 per cent in the third year, 4.8 per cent in the fourth year and six per cent from the fifth year onwards.
Kambi said Kenya Revenue Authority had been picked to take charge of the contributions to make it easy for the employers to make submissions the same way they do with Pay-As-You-Earn.
However, some employers were opposed to the commencement date, saying they were not prepared for the new rules.
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