NSSF Directs Employers to Proceed With New Deductions After Supreme Court Ruling
The National Social Security Fund (NSSF) will begin implementing higher deduction rates as per the recent Supreme Court decision issued earlier this week.
In a statement released last Friday, NSSF instructed employers to apply the updated rates starting from the February payslips.
As per the NSSF, despite the Supreme Court’s recent decision to have the case regarding the new rates heard again by the Appellate Court, it doesn’t prevent the organization from implementing the deductions.
“The Supreme Court has not lifted the Court of Appeal Orders delivered on February 3, 2023. Consequently, the National Social Security Fund Act No. 45 of 2013 remains in force.
“We affirm the Notice issued to Employers on January 12, 2024, on remittance of NSSF contributions in line with the National Social Security Fund Act No. 45 of 2013. The Fund remains committed to upholding the rule of law and ensuring compliance with all legal obligations while serving the best interests of our stakeholders,” read the notice in part.
The Supreme Court ordered that the petition should be reconsidered, as the lower court didn’t adequately address the different legal issues brought up in the appeal.
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“In the circumstances, this case is to be remitted to the Court of Appeal to determine the substantive merits of the Judgment of the ELRC. Due to the nature of the matter, the surrounding public interest, and the time taken by the case in the corridors of justice, it is prudent that the matter be heard on a priority basis,” read the judgment in part.
As per the instruction, Kenyan workers are expected to receive reduced salaries this month. Additionally, employers will be allocating funds toward their employees’ social security.
Based on the latest adjustments, individuals in Kenya who earn Ksh20,000 can expect their deductions to rise from the existing Ksh1,080 to Ksh1,200.
People making Ksh30,000 will see their deductions increase from Ksh1,080 to Ksh1,800. Those earning between Ksh36,000 and Ksh50,000 will experience a deduction of Ksh2,160 from their salaries.
Conversely, individuals in Kenya with a monthly income of Ksh100,000 will see a deduction of Ksh2,160 from their wages. Presently, they have been contributing Ksh1,080 towards their social security.
NSSF Directs Employers to Proceed With New Deductions After Supreme Court Ruling