Advocate challenges the new NSSF deductions asking court to halt implementation of them

An advocate has moved to court challenging the new NSSF deductions that is to take effect from next month.

In case filed at the Milimani Law courts, lawyer John Maina argues that the economic outcome of the said implementation will impact negatively on the economy of Kenya because more employers will have to declare their workers redundant due to the increases running costs of maintaining their employees.

He wants the court to stop the state from implementing the new contribution rates pending hearing and determination of the case.

Maina further says that the proposed deduction from the employees are coming at a time when Kenyan are inebriated with high cost of living with a shrinking pay slip because of a deresses economy.

“The 3rd schedule of the NSSF act 2013 spells clearly the amount chargeable within the first four years after the commencement of the Act ,10th January 2014 yet the Board has failed to offer guidance to the employers om how to implement this causing confusion and anxiety in both public and private sectors of the economy of Kenya.

According to court papers, the new rates indicates that the lower earnings limit or the amount that is considered the lowest pensionable salary has been raised to 7,000 shillings up from the current Ksh.6,000.

This category of employees will now contribute Sh.420 up from the current Sh 360.

Subsequently the Upper Earnings Limit has now been hiked to Ksh.29,000 from the current Ksh.18,000, meaning that most workers’ will contribute Ksh.1,740 up from Ksh.1,080. Each contribution will be matched by the employer, as has been the case.

CH Reporter

CH Reporter

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