Your NSSF deduction
Tier I + II, 2026 rates
The Year 4 NSSF contribution limits apply from February 2026. Employees contribute 6% of pensionable pay within the statutory ceiling and employers contribute an equal amount. The maximum of KES 12,960 in the official notice is the combined employee and employer amount, not the amount to deduct from one employee.
The two tiers
| Tier | Pensionable pay | Employee maximum | Employer maximum |
|---|---|---|---|
| I | First 9,000 | 540 | 540 |
| II | Above 9,000 up to 108,000 | 5,940 | 5,940 |
| Combined | Up to 108,000 | 6,480 | 6,480 |
For pay below KES 9,000, use 6% of actual pensionable earnings rather than a flat KES 540. Tier II is 6% of the earnings above KES 9,000, limited to KES 99,000. The upper earnings limit is the total ceiling, not an extra band to add above it.
Examples
| Pensionable pay | Employee contribution | Employer contribution |
|---|---|---|
| 9,000 | 540 | 540 |
| 30,000 | 1,800 | 1,800 |
| 50,000 | 3,000 | 3,000 |
| 72,000 | 4,320 | 4,320 |
| 100,000 | 6,000 | 6,000 |
| 108,000 | 6,480 | 6,480 |
| 150,000 | 6,480 | 6,480 |
Who pays more than in January 2026?
Year 3 used an upper earnings limit of KES 72,000 and a maximum employee contribution of KES 4,320. Raising the ceiling affects employees above KES 72,000. Someone on KES 50,000 still contributes KES 3,000: changing the boundary between tiers does not change the combined 6% at that salary.
At KES 100,000, employee NSSF rises by KES 1,680, from KES 4,320 to KES 6,000. Where the extra pension deduction reduces income taxed at 30%, PAYE falls by KES 504 and take-home falls by KES 1,176. The employer’s own cost rises by the full KES 1,680. These are different effects.
Payroll checks
Check pensionable earnings, contribution period, Tier I and Tier II amounts, and the employer match. A qualifying contracted-out Tier II arrangement needs the appropriate approval; an ordinary savings account is not a substitute. Do not assume pensionable pay is always basic salary plus an invented fixed percentage of housing allowance.
The February 2026 NSSF notice requires remittance by the 9th of the following month. Reconcile your member statement with payslip deductions and raise missing credits with payroll. When comparing annual earnings, keep January separate from February onwards.
Use the NSSF calculator and the PAYE calculation guide to distinguish contributions from their net-pay effect.
Sources and review date
Reviewed on 21 October 2026. Use the rules for the period being calculated; historical payslips may use different limits.