Under the new structure, employees earning more than Sh100,000 per month will pay a maximum monthly contribution of Sh6,480, up from the current Sh4,320. Workers earning below Sh100,000 will see their monthly deductions rise to Sh6,000 from Sh4,320.
However, employees earning below Sh50,000 per month have been spared the increase and will continue contributing between Sh1,500 and Sh2,100 monthly, depending on their income band.
The adjustment follows recent reforms to the NSSF contribution framework, which split the mandatory 12 per cent pension contribution equally between employers and employees.
Last year, the fund also raised contribution limits, with Tier I minimum monthly contributions doubling to Sh960, while the Tier II upper earnings limit for those earning above Sh70,000 rose to Sh8,400.
The latest increase is expected to weigh on workers already grappling with reduced purchasing power amid high inflation, elevated taxes and increased statutory deductions.
NSSF reforms are aimed at boosting retirement savings and improving long-term pension adequacy, but critics argue that the timing of the increases risks deepening financial strain for salaried workers in the short term.
