In this article, we will look at the new NSSF rates. Effective February 1, 2025, the National Social Security Fund (NSSF) implemented new contribution rates to enhance retirement benefits for workers in line with the NSSF Act of 2013.
The new rates will require employees and employers to contribute equally based on the employee’s earnings. The NSSF Act of 2013 mandates that all employees subject to the Employment Act who are between the ages of 18 and retirement age contribute to the fund. The contribution rate is set at 6% of the individual’s pensionable earnings, with the employee and the employer contributing 3% each.
Under the NSSF Act of 2013, pensionable earnings are divided into two tiers: Tier I and Tier II. Tier I contributions are for pensionable earnings up to the Lower Earnings Limit, while Tier II contributions apply to earnings above the Lower Earnings Limit. Tier I contributions are mandatory and are paid directly to the NSSF, while for Tier II, employers have the option to pay these contributions to the NSSF or direct them to a contracted-out pension scheme (approved by the Retirement Benefits Authority).
The new NSSF rates have impacted employees’ payslips, leading to increased deductions from their gross salaries. Below are the updated NSSF rates.
New NSSF Rates 2025
| 2025 NSSF Contribution Rates | |
| Lower Limit (Tier 1) | 8,000 |
| Total Contribution by Employee | 480 |
| Total Contribution by Employer | 480 |
| Total Tier 1 NSSF Contributions | 960 |
| Upper Limit (Tier 2 | 72,000 |
| Contribution on Upper Limit (6% of Upper Limit less Lower Limit) | 64,000 |
| Total Contribution by Employee | 3,840 |
| Total Contribution by Employer | 3,840 |
| Total Tier 2 NSSF Contributions | 7,680 |
| Total NSSF Contributions | 8,640 |
Comparison with the 2024 rates.
| NSSF Contribution Rates | 2024 Rates | 2025 Rates |
| Lower Limit (Tier 1) | 7,000 | 8,000 |
| Total Contribution by Employee | 420 | 480 |
| Total Contribution by Employer | 420 | 480 |
| Total Tier 1 NSSF Contributions | 840 | 960 |
| Upper Limit (Tier 2 | 36,000 | 72,000 |
| Contribution on Upper Limit (6% of Upper Limit less Lower Limit) | 29,000 | 64,000 |
| Total Contribution by Employee | 1,740 | 3,840 |
| Total Contribution by Employer | 1,740 | 3,840 |
| Total Tier 2 NSSF Contributions | 3,480 | 7,680 |
| Total NSSF Contributions | 4,320 | 8,640 |
Remittances to the Fund should be made by the 9th day of each subsequent month. Employers should not hesitate to reach out to NSSF for any clarification.
NSSF Contacts
Phone: 020 2729911, 0709 583 000, 0730 882 000, 0800 2212744
Email: info@nssfkenya.co.ke
