NSSF is a national scheme whose main objective is the provision of basic financial security benefits to Kenyans upon retirement.
Such is achieved through contribution of a certain percentage of income so as to secure compensation in the event of permanent disability, basic assistance to needy dependents in the occurrence of death as well as a monthly life pension upon retirement.
As such, the scheme is geared towards two sections of the economy i.e formal employment and informal employment.
Is NSSF Compulsory Or Voluntary?
According to the NSSF Act No.45 of 2013, there exists two types of funds within NSSF i.e
1. NSSF Pension Fund
The Pension fund is mandatory for all Kenyans in formal employment whereby employers are required to remit employee contributions to the scheme.
In-order to do this, there are certain obligations that both the employer and employee are required to adhere to. They include;
|Ensure registration as a contributing employer is done to the scheme||Ensure submission of accurate NSSF details to the employer|
|Ensure all employees are registered to the scheme||Ensure NSSF registration is done only once|
|Ensure prompt deduction and remittance of all contributions within the set deadlines||Ensure safe custody of the NSSF card|
|Maintain accurate and updated details of all employee earning records||Ensure records of personal/dependant's details are updated.|
In regards to employee contributions, the employer is required to remit contributions via any of the below mentioned channels i.e cheques, RTGS, EFT or cash payments for amounts not exceeding Ksh50,000
2. NSSF Provident Fund
Provident fund is voluntary for members in self employment whereby contributions of a monthly minimum of Ksh200 is payable via M-Pesa through;
Paybill number: 333300
Account number: Membership number
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