Pay & working terms · 4 min read
NSSF contribution rates in Kenya for 2026: Tier I, Tier II and the limits
The Year 4 NSSF rates that apply from February 2026, how Tier I and Tier II are worked out, what your employer must pay on top, and how to check that it reached your account.
Every payslip in formal employment shows an NSSF deduction, and since February 2026 it is larger for many people. The rates come from the NSSF Act, 2013, which has been phased in year by year. Here are the current figures from NSSF's own notice to employers, how to work out your deduction, and what to do if contributions do not show up in your statement.
The 2026 rates in one table
NSSF's notice to employers says Year 4 contribution rates took effect in February 2026, under the Third Schedule of the NSSF Act. Both you and your employer pay 6 per cent, split into two tiers.
Lower earnings limit (Tier I): 9,000 Tier I maximum: employee 540, employer 540, total 1,080 Upper earnings limit (Tier II): 108,000 Tier II maximum: employee 5,940, employer 5,940, total 11,880 Maximum total per employee: employee 6,480, employer 6,480, total 12,960
The same notice reminds employers to remit by the 9th day of the following month. Section 20(1A) of the NSSF Act also sets the 9th day of each month.
How to work out your own deduction
Tier I is 6 per cent of your pensionable earnings up to KSh 9,000, so it is KSh 540 once you earn KSh 9,000 or more. Tier II is 6 per cent of the part between KSh 9,000 and KSh 108,000.
Pensionable earnings are the lower of your monthly wages and the upper earnings limit (NSSF Act, section 2). The Act defines wages as all emoluments payable under your contract before deductions, excluding fluctuating emoluments. Overtime or commission that changes each month is therefore not part of the base.
Wages KSh 8,000: Tier I 6% of 8,000 = 480. Tier II 0. Total 480. Wages KSh 40,000: Tier I 540. Tier II 6% of 31,000 = 1,860. Total 2,400. Wages KSh 150,000: Tier I 540. Tier II 5,940 (capped). Total 6,480. Your employer pays the same amount again on top.
Your employer's share is not yours to pay
Section 22 of the Act lets the employer deduct your contribution from your earnings, but not its own. The employer's 6 per cent comes from its own resources. If the NSSF line on your payslip is twice what the table above gives for your wages, ask payroll to show both shares separately.
An employer that pays late owes a penalty of 5 per cent of the unpaid contribution for each month or part of a month it stays unpaid (section 27(1)).
Tier II can go to a private scheme
An employer may pay Tier II into a contracted-out pension scheme instead of NSSF, after approval by the Retirement Benefits Authority under section 21. Tier I always goes to NSSF (section 21(3)).
If your NSSF statement shows Tier I only, ask HR whether your Tier II goes to a company pension scheme, and which one.
Check that it reached your account
- NSSF lists *303# for its services, and the online member portal shows your contribution history.
- Compare each month on your statement with your payslips. A deduction on the payslip that is missing from the statement is the employer's problem to fix, and you have the right to raise it.
- Keep payslips for every month. They are your evidence if contributions are missing.
- Report unremitted contributions to NSSF in writing, with copies of the payslips.
What the money is for
Your contributions build a Pension Fund Credit. Pensionable age is 60, and a member can opt for early retirement from 50 (NSSF Act, sections 2 and 36). The Act also provides invalidity, survivors' and emigration benefits.
At its annual general meeting on 6 February 2026, the Fund declared 17 per cent net interest for 2024/2025, according to the same notice to employers.
Sources and further reading
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Frequently asked questions
What is the NSSF deduction in Kenya in 2026?
From February 2026 the employee pays 6 per cent of pensionable earnings: KSh 540 on the first KSh 9,000 and up to KSh 5,940 on earnings between KSh 9,000 and KSh 108,000. The maximum employee share is KSh 6,480 a month, matched by the employer.
Is NSSF calculated on basic or gross salary?
On pensionable earnings: the lower of your monthly wages and the upper earnings limit. The NSSF Act defines wages as emoluments payable under your contract, excluding fluctuating emoluments.
When must my employer pay NSSF?
By the 9th day of the following month. Late payment attracts a penalty of 5 per cent for each month it stays unpaid.
Why does my statement show only Tier I?
Your employer may pay Tier II into an approved contracted-out pension scheme. Ask HR for the name of the scheme.