PHOTO | FILE The NSSF Signage in Nairobi. NATION MEDIA GROUP
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The transformation of the National Social Security Fund from a provident to a pension fund was completed Saturday with the signing into law of the NSSF Bill by President Kenyatta.
It is among eight Bills that were signed into law.
Every worker will now part with six per cent of their monthly pay- subject to a maximum of Sh8,600 being the national average minimum wage.
The new payment starts in January.
This will raise workers’ pay deduction from the current Sh200 to Sh516 with the employer making an equal contribution to total Sh1,032.
The new deductions will, however, be graduated in five years with the first year contribution put at 1.2 per cent or Sh103.2 per month. The contribution will then rise to 2.4 per cent in the second year, to 3.6 per cent in third, 4.8 per cent in fourth and eventually 6 per cent by 2018.
Earlier, the public understood that the 6 per cent payment would be levied on employees’ pensionable salary immediately the Bill is signed into law.
It even caused discomfort within labour unions calling on the President not to assent to the Bill until the matter was addressed.
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