How Pay slips Will Look After NSSF Deductions in 2025/2026,”Nikubad”

Financial experts did an analysis on NSSF contributions and how pay slips will look after deductions, with changes effective from February 1, 2025 continuing into 2026.

Under the new framework, NSSF contributions have increased to six percent of an employees salary, matching with their employers

According to experts, in 2023 the NSSF contribution had two parts: Tier 1 and Tier 2. For Tier 1, the contribution was 6% of KSh 6000 (lower limit), which is KSh 360. For Tier 2 it was 6% of KSh 12,000, the difference between KSh 18000 (upper limit) and KSh 6000 which is KSh 720, totaling NSSF contribution at KSh 1080.

In 2024, Tier 1 was 6% of (lower limit) KSh 7000= KSh 420. Tier 2 was 6% of KSh 29,000 (the difference between KSh 36,000 (upper limit) and KSh 7000, which is KSh 1740. So the total contribution then was KSh 2160.

In 2025, effective February,1,  Tier 1 will be 6% of KSh 8000 (lower limit), which is KSh 480. Tier 2 will be KSh 72,000 (upper limit), (72,000-8000)×6%= KSh 3840. So the total contribution will be 480 + 3840= Sh 4320. Employees will now be contributing double the amount from the previous year, employers will also match the amount.

In 2026 Tier 1 lower limit is Sh 9000, So 6% of 9000= Sh 540. Tier 2 will be 6% of Sh 99,000 (the difference between Sh 108,000 (upper limit) and Sh 9000 which is 5940. So the total contribution will be (5940+ 640) will be 6480.

Kenyans reacted to this differently.

“Include housing levy and shisha deduction.” Dr. Bismack hilariously said.

” Except for corruption, which should not be an excuse for not paying taxes, taxes are the biggest equalizer with a good funding Government.” Peace lover said

” It’s about to go down.” Nik added

“Say no more, nikubad,”  Jaymore said.

However, in 2024, the Court of Appeal upheld the constitutionality of the Act, which was later nullified by the Employment and Labour Relations Court (ELRC), nullified the ruling. Further getting support, the Supreme Court  said, it was within the its jurisdiction to act on the Act.

Leaders in the opposition have called upon President William Ruto to reconsider his tax collection, to avoid pressing already struggling Kenyans, as the economy continues to bite.