Quick Answer: How Much Does NSSF Deduct From Salary?

Do teachers pay NSSF?

NSSF stipulates the Lower Earnings Limit (LEL) at Kshs.

6,000, while Kshs.

The fund deducts a total of 12% on the pensionable wages, 6% being from the employee and the remaining 6% charged on the employer.

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How much do I pay for NHIF registration?

The application is free of charge. For members under the voluntary category, they pay Kshs. 500 per month (Kshs. 6000 per annum) as contributions.

Is Pension subject to tax?

Normally, any pension paid to you is treated as earned income and may be liable to income tax. Pension income paid to you is normally treated as earned income for income tax purposes, although you don’t pay any National Insurance contributions on your pension income.

How much do you pay for NSSF?

Facts about the New NSSF Rates Employees contributions range from 360 shillings to a maximum of 1080 shillings per month for the first year. Employers will also be contributing an equal amount as yours towards your future. Voluntary contributor: Your minimum monthly contributions are now 200 shillings 100 shillings.

How is NSSF calculated in Kenya?

NSSF contribution rates are made up of a total of 12% of the entire pensionable salaries and wages. NSSF monthly rates are divided into two equal parts whereby the employer pays 6%, and the employee pays the remaining 6%.

Can I withdraw from NSSF?

The NSSF Act, like the Trust Deeds and Rules of most licensed retirement benefits schemes, describes the benefits a person can access i.e. age benefits, withdrawal benefit, invalidity benefit, emigration grant, and survivor’s benefit. … NSSF money is for post-employment not a health insurance policy.”

How do I check my NHIF penalties?

Follow these steps to get your NHIF account status on your mobile phone:Open your phone messaging application and compose a new SMS message.Type the letters “ID,” space, then your National ID number (or passport number if applicable) for example ID 12345678.Send the message to 21101.More items…•

Is NSSF compulsory in Kenya?

The National Social Security Fund is a Kenyan government agency responsible for the collection, safekeeping, responsible investment and distribution of retirement funds of employees in both the formal and informal sectors of the Kenyan Economy. Participation for both employers and employees is compulsory.

Is NSSF taxable?

The first kshs. 600,000 benefits paid out of the National Social Security Fund (NSSF)….Employment Tax in Kenya.Indirect TaxToolsCustomsPension RatesExciseDiscussion DraftsQ & A1 more row

Is NSSF mandatory?

First Pillar – Mandatory to all workers. The mandatory contribution is by both employer and employees and it targets workers in both the formal and informal sectors. This is where the National Social Security Fund (NSSF) comes in. Second Pillar – Mainly employer based and contribution is voluntary.

How do I benefit from NSSF?

New NSSF Rates – BenefitsAccess to mortgage facilities.Retirement pension.Invalidity pension.Survivors’ benefit.Funeral grant.Emigration benefit.

What does NSSF cover?

About the National Social Security Fund, NSSF We provide social security protection to workers in the formal and informal sectors. We register members, receive their contributions, manage funds of the scheme, process and ultimately pay out benefits to eligible members or dependents.

How do I create an NSSF file in Excel?

How to Prepare and Submit NSSF Payroll ReturnPrepare your payroll excel file for the month. … Go to employer self-service and click payroll and payment processing. … Click on Payroll Converter.Create Payroll Period (MM/YYYY, e.g. 11/2018 for November 2018)Select Payroll Type (Select Regular except for special cases)More items…•

How much tax will I pay on my pensions?

When you take money from your pension pot, 25% is tax free. You pay Income Tax on the other 75%. Your tax-free amount doesn’t use up any of your Personal Allowance – the amount of income you don’t have to pay tax on.

What is the tax rate for pension lump sum?

25%You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum. The tax-free lump sum doesn’t affect your Personal Allowance. Tax is taken off the remaining amount before you get it.

When can I get NSSF money?

Eligibility: Members are eligible for this benefit when they reach the age of 55 years, or when they ultimately retire from regular employment.

How much should I pay for NHIF per month?

The NHIF rates and benefits calculation is based on gross income. With the introduction of new rates, the lowest contribution shall be Ksh 150 per month on monthly income up to Ksh 5,999. While the highest contribution shall be Ksh 1,700 on a monthly income over Ksh 100,000 as shown in the table below.

How do you calculate pay as you earn in Kenya?

Pay-As-You-Earn(PAYE) is the tax charged on income earned by employees in Kenya….The formula for calculating this income tax in Kenya uses the following simple steps:Gross Income = Basic salary + allowances + commissions.Taxable Income = Gross Income – all deductions/exemptions allowed by law e.g. NSSF, private pension.More items…

Who qualifies for NSSF benefits?

Contributions. The NSSF covers all employers who have 5 or more employees between 16 and 55 years of age, with the exception of employees under the Government Pensions Act.Investment. NSSF collects members’ contributions and invests them judiciously, and pays commensurate benefits to qualifying members.Benefits.

How much is the penalty for NHIF late payment?

√ If one makes a late payment, he or she will incur a fine of 50% of the monthly contribution coupled with a requirement to pay for one year in advance.

How do I know my NSSF contribution?

OPTION 2 – Access your statement balance via SMSSend the word “NSSF” to 6773 and follow instructions.Type NSSF< leave space> NSSF No < leave space> Date of Birth Full Names and send to 6773.You will receive a PIN (after we have validated our data)Type Bal, your new PIN” and send to 6773.View your statement balance.