Last verified: 16 October 2026. Payroll rules change; confirm current rates with the authority before filing, or let your OurPay specialist do it.
The 2026 rates at a glance
| Item | From February 2026 |
|---|---|
| Contribution rate | 6% employee and 6% employer (unchanged) |
| Lower earnings limit (Tier I) | 9,000 (was 8,000) |
| Upper earnings limit (Tier II) | 108,000 (was 72,000) |
| Tier I contribution | 540 employee + 540 employer |
| Maximum Tier II contribution | 5,940 employee + 5,940 employer |
| Maximum per side per month | 6,480 |
| Maximum combined (employee + employer) | 12,960 |
The rate did not change in 2026. What changed is the band of pay it applies to. This is year four of the phased increases under the NSSF Act, 2013, and further adjustments are expected to follow the same route.
How Tier I and Tier II work
Tier I is 6% of pensionable earnings up to the lower earnings limit of 9,000, so it is 540 for anyone earning at least 9,000. Tier II is 6% of the pay between 9,000 and the upper earnings limit of 108,000. Pay above 108,000 attracts no further NSSF.
Worked examples
| Monthly gross | Tier I | Tier II | Employee total |
|---|---|---|---|
| 8,000 | 480 | 0 | 480 |
| 50,000 | 540 | 2,460 | 3,000 |
| 100,000 | 540 | 5,460 | 6,000 |
| 150,000 | 540 | 5,940 | 6,480 (capped) |
The employer pays the same amount again on top of the employee's gross pay, so for the 100,000 example the employer cost is a further 6,000.
Try it: monthly gross to net pay in Kenya
Estimate for a resident employee with personal relief only. For housing, car, pension and other benefits use the full Kenya payslip calculator.
Tax treatment
The employee's NSSF contribution is deducted from pay before PAYE is calculated, so it lowers taxable pay. Applying it in the wrong order overstates PAYE. See PAYE tax bands in Kenya for the full sequence.
Contracted-out schemes
Employers with an approved occupational pension scheme can contract out of Tier II, so only Tier I (540 a side) goes to NSSF and the remainder is paid into the private scheme instead. Our Kenya calculator has an option for this under additional information.
When to pay
NSSF must be remitted by the 9th of the month following the payroll month. A February payroll is due by 9 March. Late payment attracts penalties under the NSSF Act. Our deadlines guide lists every Kenyan due date in one place.
Common mistakes
- Still capping pensionable pay at the old 72,000 limit after February 2026.
- Calculating 6% on the whole salary instead of applying the 108,000 ceiling.
- Forgetting that the employer's matching share is an extra cost, not a deduction.
- Deducting NSSF after PAYE instead of before.
Frequently asked questions
Is NSSF mandatory for every employee?
Yes, employers must register and contribute for their employees. The Act sets how it applies to special cases, so confirm with NSSF if yours is unusual.
Does NSSF replace a private pension?
No. NSSF is the statutory scheme. Many employers add a voluntary pension on top, or contract out of Tier II with an approved scheme.