Kenya NSSF Contribution Calculator
Determine exact employee and employer pension contributions across Tier I and Tier II bands under the National Social Security Fund Act 2013.
🛡️ Pensionable Salary & Scheme Options
Total monthly deposit into retirement savings (Employee 6% + Employer 6%).
NSSF Tiered Schedule Matrix Section 20 & 21 Schedule
| Tier & Category | Earnings Base | Employee (6%) | Employer (6%) |
|---|
❓ Frequently Asked Statutory Questions
What are the current NSSF contribution tiers and earnings limits in Kenya?
Under the phased implementation of the NSSF Act 2013, contributions are divided into two tiers: Tier I covers earnings up to the Lower Earnings Limit (LEL) of KES 7,000 at 6% (max KES 420 employee / KES 420 employer). Tier II covers earnings between the LEL (KES 7,000) and the Upper Earnings Limit (UEL) of KES 36,000 at 6% (max KES 1,740 employee / KES 1,740 employer). The combined maximum statutory contribution is KES 2,160 for the employee, matched by KES 2,160 from the employer.
Can an employer opt out (contract out) of NSSF Tier II contributions?
Yes. Under Section 21 of the NSSF Act 2013, employers with approved private occupational retirement benefit schemes or umbrella schemes registered with the Retirement Benefits Authority (RBA) can apply to opt out of remitting Tier II contributions to NSSF. Upon RBA and NSSF clearance, Tier II contributions may be channeled into the private pension fund, while Tier I must strictly remain with NSSF.
Are NSSF contributions tax-deductible against PAYE in Kenya?
Yes. Employee NSSF contributions (both Tier I and Tier II) are fully tax-deductible under Section 15 of the Income Tax Act. They are subtracted from gross earnings alongside qualifying voluntary pension contributions (subject to a combined statutory cap of KES 20,000 per month or KES 240,000 per year) before computing taxable pay.
What happens if an employee earns below the Lower Earnings Limit (KES 7,000)?
For employees earning below KES 7,000 per month (including casual or minimum-wage workers), the 6% rate applies to their actual gross salary. For example, an employee earning KES 5,000 pays 6% (KES 300), matched by KES 300 from the employer, with 0 Tier II liability.
What is the penalty for late remittance of NSSF contributions?
Under Section 27 of the NSSF Act 2013, NSSF contributions must be paid by the 9th day of the subsequent month. Late remittances attract a statutory penalty of 5% per month or part of a month on the overdue amount until fully liquidated.
Engr. Muhammad Shahzad
Verified Tax & Statutory Systems SpecialistCertified Systems Engineer and International Fiscal Policy Researcher. Specializing in computational labor standards, statutory payroll compliance, and tax withholding architectures across Commonwealth and East African Community (EAC) jurisdictions.