NSSF ACT 2013
The NSSF Bill 2013 was passed by the National Assembly on 4th December 2013 and received presidential assent on 24th December 2013 repealed the NSSF Act (Cap 258) and replaced it with the NSSF Act 2013. In this regard from the commencement date of the NSSF Act 2013 the previous amount of Kshs 400 per employee under the NSSF ACT no longer applies.
The highlights of the NSSF Act 2013 include:
1. Convert the existing NSSF from a provident fund to a pension scheme.
2. Mandatory contributions are a total of 12% of a person’s earnings divided as follows:
a. Employer contributions of 6%
b. Employee contributions of 6%
2. Contributions into the scheme are divided into two categories
a. Tier I contributions : All is remitted to NSSF
b. Tier II contributions: Goes to NSSF or to a registered private pension scheme of which the employee is a VALID member by the commencement date.
3. Both Tier I and Tier II contributions are mandatory.
4. All pension contributions are tax deductible contributions.
5. All employers with one employee or more are required to register with the NSSF and remit contributions every month.
6. Any employer who fails to deduct and remit contributions to the NSSF, neglects or refuses to register with NSSF commits an offence and shall be liable to a fine of Kshs 300,000/-.
7. Access to public services for all employers shall be subject to registration with the Fund (NSSF).
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