The Act transformed NSSF from a provident fund to a pension scheme, which will be regulated by the Retirement Benefits Authority. The same will apply for employers, who according to the regulations, will be deemed to be registered if they were members of the previous provident fund. The regulations also give NSSF the option of using employees’ national identity numbers as the membership numbers, as opposed to the previous situation where the Fund had to generate unique numbers for its members. “The Board may adopt the universal government identification card number to be the membership number,” said the regulations.
Be ready to pay more NSSF from this June
The Labour Ministry has published fresh regulations expected to aid the implementation of the new National Social Security Fund Act.  The Act will increase monthly contributions by up to 440 per cent beginning next month. “Every member of the previous Fund, other than members making voluntary contributions shall at the commencement of these regulations be deemed to be registered members of the Pension Fund,” reads the regulations. The NSSF Act came into place January this year, but proper implementation has been hampered by lack of guiding regulations. The sets of regulations published on Friday are yet to be gazetted. This is as the ministry seeks views from the public. Stakeholders, including employers and employees are expected to submit their views by May 9. The ministry will then consider them before making the regulations official.  This will pave way for higher contributions slated to start June. In the first year, monthly contributions will go up to Sh2,160, split between the employer and employee, each contributing Sh1,080 in instances where employees earn above Sh18,000. This is up from the Sh200 monthly contribution made by employees currently. In the regulations, employees will not have to register for the new NSSF created by the 2013 Act and instead, the new entity will take up the register of the previous Fund.
The Act transformed NSSF from a provident fund to a pension scheme, which will be regulated by the Retirement Benefits Authority. The same will apply for employers, who according to the regulations, will be deemed to be registered if they were members of the previous provident fund. The regulations also give NSSF the option of using employees’ national identity numbers as the membership numbers, as opposed to the previous situation where the Fund had to generate unique numbers for its members. “The Board may adopt the universal government identification card number to be the membership number,” said the regulations.
The Act transformed NSSF from a provident fund to a pension scheme, which will be regulated by the Retirement Benefits Authority. The same will apply for employers, who according to the regulations, will be deemed to be registered if they were members of the previous provident fund. The regulations also give NSSF the option of using employees’ national identity numbers as the membership numbers, as opposed to the previous situation where the Fund had to generate unique numbers for its members. “The Board may adopt the universal government identification card number to be the membership number,” said the regulations.
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