Take a gross monthly pay of KES 60,000. NSSF is 6% across two tiers under the February 2026 rates. Tier I covers pay up to the Lower Earnings Limit of KES 9,000, so it is 6% of 9,000, which is KES 540. Tier II covers pay from 9,001 up to the Upper Earnings Limit of KES 108,000. Here pay is 60,000, so Tier II is 6% of (60,000 minus 9,000), which is 6% of 51,000, or KES 3,060. The employee total is KES 3,600, and the employer matches it.
Tier
Pay band (KES)
Employee (KES)
Tier I (6%)
0 to 9,000
540
Tier II (6%)
9,001 to 60,000
3,060
Employee total
3,600
Employer match
3,600
Combined into the fund
7,200
The employee contributes KES 3,600 and the employer adds another KES 3,600, so KES 7,200 a month goes into the fund. At pay of KES 108,000 or more, both tiers hit their ceilings and each party pays the maximum KES 6,480. The chart splits the employee's KES 3,600 between Tier I and Tier II.
How it is calculated
The National Social Security Fund runs on a two-tier model under the NSSF Act, with the Year 4 rates that took effect on 1 February 2026. Both tiers charge 6% of pensionable pay, and the employer matches the employee in each. Tier I applies to pay up to the Lower Earnings Limit of KES 9,000, capping that tier at KES 540 per party. Tier II applies to pay between the Lower and Upper Earnings Limits, from 9,001 to KES 108,000, capping that tier at KES 5,940 per party. Adding the two tiers, the most any employee or employer pays is KES 6,480 a month, reached once pay is KES 108,000 or higher. NSSF is an allowable deduction, so it reduces the taxable pay on which PAYE is worked out. The contributions build a retirement pot that the member can access at retirement age, subject to scheme rules.
Frequently asked questions
How much is NSSF in Kenya in 2026?
NSSF is 6% of pensionable pay, matched by the employer, across two tiers. Tier I covers pay up to KES 9,000 (max KES 540 each). Tier II covers pay from KES 9,001 to KES 108,000 (max KES 5,940 each). The most an employee or employer pays is KES 6,480 a month.
What is the difference between NSSF Tier I and Tier II?
Tier I applies to the first KES 9,000 of monthly pay, which is the Lower Earnings Limit. Both employee and employer pay 6% of this slice, capping at KES 540 each. Tier II applies to the portion of pay between KES 9,001 and the Upper Earnings Limit of KES 108,000. The rate is still 6% per side, capping at KES 5,940 each. An employee on KES 108,000 or more pays the maximum combined KES 6,480 a month.
Does NSSF reduce my taxable income in Kenya?
Yes. NSSF contributions are an allowable deduction for PAYE purposes. Your employer subtracts the employee NSSF amount from your gross pay before applying the income-tax bands, which slightly reduces the PAYE you owe. On a salary of KES 60,000, the KES 3,600 NSSF deduction reduces taxable pay to KES 56,400 before SHIF and the Housing Levy are also taken into account.
What happens to the NSSF contributions I make in Kenya?
Contributions accumulate in the National Social Security Fund under your member number. On reaching retirement age, members can access the Tier I savings through the existing NSSF scheme or through a registered retirement benefit scheme that their employer uses for Tier II. The fund is supervised by the Retirement Benefits Authority. Contributions build a pension entitlement, unlike a tax, which is why they are classified separately from PAYE.