Kenya – 2024 National social security fund ceiling changes
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Changes in lower & upper earnings limits
In accordance with the Third schedule of the NSSF Act No. 45 of 2013, the lower earnings limit and the upper earnings limit shall increase year-on-year as depicted in the table below.
| Year | Lower Earning Limit | Upper Earnings Limit |
|---|---|---|
| 1 (2023) | 6,000.00 | 50% of national average earnings |
| 2 (2024) | 7,000.00 | 1 times national average earnings |
| 3 (2025) | 8,000.00 | 2 times national average earnings |
| 4 (2026) | 9,000.00 | 3 times national average earnings |
| 5 (2027 onwards) | Average statutory minimum monthly basic wage | 4 times national average earnings |
With effect from 1 February 2024, the new NSSF ceiling amounts will be KES 7,000.00 for the lower earnings limit and KES 36,000.00 for the upper earnings limit. The contribution remains constant at 6% of pensionable earnings.
The impact of the update is shown below:
| Pensionable Earnings | Tier I Employee Contribution | Tier I Employer Contribution | Tier II Employee Contribution | Tier II Employer Contribution |
|---|---|---|---|---|
| 3,000.00 | 180.00 | 180.00 | 0.00 | 0.00 |
| 7,000.00 | 420.00 | 420.00 | 0.00 | 0.00 |
| 20,000.00 | 420.00 | 420.00 | 780.00 | 780.00 |
| 36,000.00 | 420.00 | 420.00 | 1,740.00 | 1,740.00 |
| 40,000.00 | 420.00 | 420.00 | 1,740.00 | 1,740.00 |
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change
Employer of Record (EOR) Kenya | PEO Kenya | Payroll in Kenya
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Kenya NSSF Update 2024: New Earnings Limits and Pension Contributions Revealed
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