NSSF Warns of Hefty Penalty Over Monthly Deductions

The Fund, on Monday, November 9, directed companies to remit all the month-to-month contributions subtracted from workers’ October 2026 wages within the next 24 hours or deal with the charge.

“Late remittance attracts a penalty of 5 per cent of the amount due for every month, or part of a month, it remains unpaid,” NSSF mentioned, cautioning companies versus keeping cash subtracted from employees’ incomes.

According to NSSF, prompt remittance enables the Fund to properly tape workers’ contributions, advising companies to send both their share and the reductions made from employees’ wages.

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Nairobi Review

“Contributions deducted from October salaries must be remitted to NSSF today. Please remit both the employee and employer portions on time. Timely remittance helps ensure your employees’ contributions are recorded correctly,” the Fund included.

Under the 2026 contribution structure, staff members contribute 6 percent of their pensionable revenues, matched by an equivalent contribution from companies, with the reductions divided into Tier I and Tier II based upon month-to-month wages.

Tier I covers regular monthly profits of as much as Ksh9,000, drawing in an optimum contribution of Ksh540 each from the staff member and company, while Tier II uses to incomes in between Ksh9,001 and Ksh108,000, with each celebration contributing approximately Ksh5,940.

Companies should subtract workers’ contributions from their wages, include their coordinating share, and remit the combined total up to NSSF through the readily available payment channels after submitting month-to-month returns on the Fund’s self-service website.

NSSF needs companies to send contributions by the ninth day of the following month, with late payments drawing in a 5 percent charge for every single month, or part of a month, that the quantity stays overdue.

The contribution structure has actually stayed in location regardless of legal difficulties after the Court of Appeal decreased to suspend the application of an Employment and Labour Relations Court judgment that stated crucial arrangements of the NSSF Act unconstitutional.

Following the choice, NSSF provided an explanation on June 5, 2026, directing companies to continue remitting contributions at the existing rates rather of going back to the previous plan, which needed both celebrations to contribute Ksh200 regular monthly.

NSSF kept that the pending court procedures did not impact the appropriate contribution rates, which stayed under the 4th year of application offered in the Third Schedule of the Act.