FKE: New NSSF rates will hurt employees, threaten private pension schemes
The Court of Appeal has allowed a ten-fold increase to Sh2,068 in workers’ monthly contributions to the National Social Security Fund (NSFF) after it ruled that a lower court did not have powers to hear a case challenging the validity of the new rates.
Employes in Kenya have called for dialogue on the new NSSF rates, warning that the impending higher deductions could destabilise workers and jeopardise existing private pension schemes.
"The increase in pension contributions will be an expensive undertaking to both employers and employees as it has a direct financial impact on payroll costs and on the employees’ take-home pay. We, therefore, propose a phased-out approach," the Federation of Kenya Employers said in a statement to newsrooms on Wednesday evening.
