The National Social Security Fund is Kenya's compulsory pension scheme for people in formal employment. Every month both the employee and the employer pay in, and the money builds into a retirement benefit. Under the NSSF Act of 2013 the contribution limits rise in stages, which is why the figure on your payslip changes from time to time.

The rate and the limits

The contribution is 6% of pensionable pay from the employee and 6% from the employer. The rate has stayed the same, but the earnings limits it applies to have been phased upwards each February since 2023. From February 2026 the limits are:

  • Lower earnings limit (LEL): KES 9,000
  • Upper earnings limit (UEL): KES 108,000

Pensionable pay above the upper limit is not counted. Anyone earning KES 108,000 or more therefore pays the same maximum.

Tier I and Tier II

The contribution is split into two tiers:

  • Tier I is 6% of pay up to the lower earnings limit. At KES 9,000 that is KES 540 each from the employee and the employer.
  • Tier II is 6% of pay between the lower and upper limits, a band of up to KES 99,000. That is up to KES 5,940 each.

Together the maximum is KES 6,480 from the employee and KES 6,480 from the employer, or KES 12,960 for the pair. Someone earning KES 50,000 pays 6% of 9,000 for Tier I and 6% of 41,000 for Tier II, a total of KES 3,000. Use the NSSF calculator to see your own figures and the limits for earlier years.

How it affects your tax

NSSF is deducted before PAYE is worked out, so a higher contribution lowers your taxable pay slightly. Our guide on how PAYE is calculated shows where the deduction sits in the sum, and the PAYE calculator puts the NSSF, SHIF and Housing Levy together in one result.

What employers must do

Employers register with NSSF, deduct the employee share and add the employer share. The total is paid by the 9th of the following month to avoid penalties. Late or missed payments are costly, so a reminder system helps. The statutory remittance tracker lists every deduction with its due date, and the monthly payroll workbook calculates each employee's NSSF automatically from the current limits.

If you are budgeting for hires, remember that the employer's 6% is a real cost on top of salary. The staff cost and headcount budget planner adds it in for every position.

Common questions

Can I opt out? Membership is compulsory for employees, with limited exceptions. Some employers use approved private pension schemes alongside NSSF; ask your employer for the details of your arrangement.

What do I get back? The contributions earn interest and form your retirement benefit, which you can claim at the age set by the law. Tax on a lump sum is a separate matter; see the pension lump sum tax calculator.

Does the self-employed person pay? Self-employed people can register and contribute voluntarily.

NSSF is one of three payroll deductions that changed in recent years. Read about SHIF contributions and the Affordable Housing Levy to see the full picture, or browse all of our employee tax calculators.

Limits are set by law and can be changed. Confirm the current limits with NSSF before relying on a figure in a contract.