NSSF has urged workers to check salary deductions against their pension statements.
NSSF urges employees to verify pension remittances and ask employers about missing contributions, as it warns of penalties for late payments.
The National Social Security Fund has directed employees to compare NSSF deductions on their payslips with pension statements. The checks aim to establish whether employers have remitted all amounts taken from workers’ salaries.
In its Tuesday, November 10 advisory, the Fund also explained how employees can calculate their monthly contributions. Workers should confirm that their pension records reflect the deductions shown on their payslips.
If a contribution appears missing, employees should ask their employer to confirm the remittance. However, workers whose employers have approved Tier II arrangements should check that portion with their employer or pension scheme.
How to calculate NSSF deductions
Under the Year Four rates, employees contribute six per cent of their pensionable earnings towards retirement savings. Employers must also contribute an equal amount for each worker.
The calculation splits pensionable earnings into two tiers. Tier I covers the first Ksh9,000, while Tier II covers earnings above that amount, up to Ksh108,000.
For example, a worker earning Ksh30,000 a month contributes Ksh540 under Tier I. The remaining Ksh21,000 attracts a further Ksh1,260 contribution under Tier II, bringing the employee’s monthly deduction to Ksh1,800.
The employer must then match that Ksh1,800 contribution. Together, the two portions bring the worker’s total monthly pension contribution to Ksh3,600.
However, earnings above Ksh108,000 do not attract further deductions. The maximum monthly contribution therefore stands at Ksh6,480 each for the employee and employer, or Ksh12,960 combined.
Employers face penalties for late remittances
The worker advisory followed a separate warning to employers on Monday, November 9. That notice concerned outstanding pension contributions deducted from employees’ October 2026 salaries.
NSSF directed employers to clear those contributions and warned against withholding money deducted from workers’ pay. It said employers had to remit October contributions by November 9.
Late payments attract a penalty of five per cent of the amount due for each month of delay. The penalty also applies to any part of a month that the contribution remains unpaid.
The Fund further urged employers to submit both the employee deductions and their matching contributions on time. Timely remittance, it said, helps ensure that workers’ pension records correctly reflect their contributions.
