How is NSSF contribution calculated?
How is NSSF contribution calculated?
Rates of Contributions The rate of employee’s share should not exceed 10% of his monthly wage under the following arrangement: 10% employer/10% employee, or 15% employer / 5% employee. However, the employer may opt to remit the whole 20% without deducting from employees’ wage.
How much does an employer pay for NSSF?
The NSSF monthly rates deducted equally between the employer and employee. Therefore, the employer pays 6% and the employee pays the other 6%. The employees’ contributions will be deducted directly from their salaries and wages while the employers’ contributions shall come from the employers.
Is NSSF taxable in Kenya?
The first kshs. 600,000 benefits paid out of the National Social Security Fund (NSSF)….Employment Tax in Kenya.
| Indirect Tax | Tools |
|---|---|
| Customs | Pension Rates |
| Excise | Discussion Drafts |
| Q & A |
How much does it cost to get NSSF in Kenya?
Register as a member: Voluntary If you are in self employment, all you need is to visit any NSSF Office. Your original National Identity Card (ID Card), Alien Card or Passport. You will then pay a minimum amount of Ksh 200, as an initial contribution to activate your card.
How much is NSSF monthly?
Employees contributions range from 360 shillings to a maximum of 1080 shillings per month for the first year. Employers will also be contributing an equal amount as yours towards your future. Voluntary contributor: Your minimum monthly contributions are now 200 shillings 100 shillings.
When can I get NSSF money?
Eligibility: Members are eligible for this benefit when they reach the age of 55 years, or when they ultimately retire from regular employment.
How much should I pay for NSSF per month?
NSSF contribution rates comprise a total of 12% of the employee’s entire pensionable salaries and wages. NSSF monthly rates are divided into two equal parts whereby the employer pays 6%, and the employee pays the remaining 6%.
How does an employer pay NSSF?
That under the National Social Security Fund (NSSF) Act, employers are required to remit contributions by:
- cheques.
- bankers cheques.
- Real Time Gross Settlement (RTGS)
- Electronic Funds Transfers (EFT);
- Cash subject to a maximum of 5,000 shillings or.
- Through the NSSF M-pesa business No. 333300.
Who is exempt from paying tax in Kenya?
Tax exemption refers to the act of removing tax from goods or services offered by an organization. Tax exemption in Kenya also extends to any ordinary person as well as individuals with disabilities. There are various forms of tax exemption, and all are dependent on the type of tax in discussion.
How are Kenyan pensions paid?
How can one be paying Pension in Kenya? Upon maturity, the pension funds are paid in a lump sum or monthly basis. On the other hand, upon retirement, you can have access to a third of the funds as a cash lump sum and the two-thirds is paid on a monthly basis.
How do I claim my NSSF money?
How to apply: Visit your nearest NSSF office with the following documents:
- A certified copy of your retirement letter OR certificate of service OR termination letter.
- NSSF Membership Card.
- National Identity Card/ Passport/ Alien ID.
- Bank details for EFT.
What is the NSSF contribution rate in Kenya?
NSSF contribution rates comprise a total of 12% of the employee’s entire pensionable salaries and wages.
What was the interest rate for the NSSF?
The interest rate for the year equates to 1.1 trillion shillings paid out in interest to members of the Fund. This is the very first time in the Fund’s history that the Fund has declared 15% interest rate to its members.
What is the Social Security Fund in Kenya?
The National Social Security Fund (NSSF) is a social government organization mandated with collecting, safekeeping, distributing and investing retirement funds for Kenyan workers. The NSSF rates in Kenya vary from one individual to another, and both public and private sectors contribute a percentage of their income to the fund.
When was NSSF Act 45 passed in Kenya?
NSSF rates in Kenya are guided by the NSSF Act 45 of 2013, which was passed in January 2014. The act also changed the organization from a provident fund to a pension scheme. Employers and employees should stay up to date with the stipulated rates for every year to align with the government’s regulations.