TSC Teachers To Face New Payslip Deductions Starting February .
TSC Teachers To Face New Payslip Deductions Starting February . Tighten Your Belts: Higher NSSF Deductions to Hit Teachers’ Pay in February.
The government is set to implement a significant increase in National Social Security Fund (NSSF) contributions starting February 1, 2025, a move that will reduce the take-home pay of Kenyan teachers and other employed individuals. This change comes as part of the NSSF Act of 2013, which was delayed for a decade due to legal challenges but finally upheld by the Court of Appeal in 2022.
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Under the new regulations, employees will contribute 6% of their salary to the NSSF, up from the current fixed rate of Ksh2160. Employers will be required to match this contribution. For employees earning higher salaries, the deductions will be substantial. For example:
– A teacher earning Ksh40,000 will take home around Ksh32,000 after all statutory deductions, including the Housing Levy, Social Health Authority contributions, and Pay As You Earn (PAYE).
– Those earning Ksh50,000 and Ksh70,000 will retain Ksh38,000 and Ksh53,000, respectively.
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The Act also increases the pensionable salary limits, raising the lower earnings threshold to Ksh9,000 (up from Ksh7,000) and the upper limit to Ksh29,000. Employees in these categories will now contribute more toward their pensions.
This adjustment is part of the government’s broader initiative to boost contributions to the social security fund while addressing the country’s budget deficit. Simultaneously, parliament is reviewing three new tax bills aimed at generating additional revenue. These include the Tax Procedures (Amendment) Bill, the Tax Laws (Amendment) Bill, and the Business Laws (Amendment) Bill.
As the government enforces these changes, teachers and other workers must brace for tighter budgets starting February 2025. Stay informed and plan ahead as these measures take effect.
