The new National Social Security Fund (NSSF) rates set to go into effect in February, according to Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli, will benefit Kenyans in the long run.
The SG stated in a statement dated Saturday, February 11, that the Ksh2,160 monthly deductions were not a tax but rather money that would cushion Kenyans upon retirement.
The COTU SG stated that all workers would benefit because it made it mandatory for employers to provide workers with a provident fund and a pension scheme.
He also stated that workers will be entitled to monthly benefits upon retirement.
“Many workers have only contributed to and received funds from the provident fund, which is a lump sum payment that workers have received all at once (Tier 1 – provident fund).
He also stated that workers will be entitled to monthly benefits upon retirement.
“Many workers have only contributed to and received funds from the provident fund, which is a lump sum payment that workers have received all at once (Tier 1 – provident fund).
“Kenyan workers have been exposed to old age poverty after receiving a lump sum from the provident fund, as they have no social security coverage ” submitted Atwoli.
However, he urged the fund’s management to manage the funds in such a way that they do not harm Kenyans.
The new NSSF rates require both employers and employees to contribute Ksh2,160.
Tier 1 requires both employees and employers to pay Ksh360, while Tier 2 (pension fund) requires both employees and employers to contribute Ksh720.
