NSSF contributions went up again from February 2026. The rate itself did not change — but the earnings limits it applies to did, which means a larger deduction from most payslips and a higher matching cost for employers. Here is what changed and how to calculate it.
What is NSSF?
The National Social Security Fund is Kenya's mandatory retirement savings scheme. Under the NSSF Act, 2013, both employee and employer contribute 6% of pensionable pay each — a combined 12% — split across two tiers. The rates have been rising in phases since 2023.
The 2026 earnings limits
From the February 2026 payroll onward, the limits that define the two tiers rose:
- Lower Earnings Limit (Tier I): KES 9,000 (up from KES 8,000)
- Upper Earnings Limit (Tier II): KES 108,000 (up from KES 72,000)
Note: January 2026 salaries were still processed on the old limits (8,000 and 72,000). The new figures apply from February 2026.
How Tier I and Tier II work
- Tier I covers pensionable pay up to the lower limit. 6% of KES 9,000 = KES 540 per side (employee and employer).
- Tier II covers pay between the lower and upper limits. The maximum is 6% of (108,000 − 9,000) = 6% of 99,000 = KES 5,940 per side.
So the maximum employee contribution is KES 6,480 per month (540 + 5,940), matched by the employer — a combined ceiling of KES 12,960.
Worked examples
Salary of KES 50,000:
- Tier I: 6% × 9,000 = KES 540
- Tier II: 6% × (50,000 − 9,000) = 6% × 41,000 = KES 2,460
- Employee total: KES 3,000 (employer matches)
Salary of KES 150,000 (above the cap):
- Tier I: KES 540
- Tier II: capped at 6% × 99,000 = KES 5,940
- Employee total: KES 6,480 (the maximum)
Two things employers should know
- NSSF is tax-deductible. It comes off gross pay before PAYE is calculated, so a higher NSSF deduction slightly lowers taxable pay.
- Tier II can be contracted out. With Retirement Benefits Authority approval, employers may remit Tier II to an approved private scheme instead of NSSF. Tier I always goes to NSSF.
Contributions are remitted by the 9th of the following month.
How Force HRM handles NSSF
Force HRM applies the current Tier I and Tier II limits automatically, calculates both the employee and employer sides, and keeps the deduction correct as the phased rates continue to change. See how Force HRM runs your payroll.
NSSF limits are set annually by the Cabinet Secretary. Figures here reflect the February 2026 rates — confirm against the current NSSF notice before filing.