Workers to get unemployment benefits with rise in NSSF fees - Corporate News |businessdailyafrica.com

In Summary

• Formal sector workers contribution to NSSF is currently split equally between the employer and employee for a total of Sh400.
• The Bill proposes to divide member contribution into two tiers.
• The first tier of contributions will see all formal sector workers contribute a portion of their salaries equivalent to six per cent of those earning the prevailing minimum wage with an equal share of contribution from their employers.
• The second tier of contributions will be exclusive to those earning over and above the minimum wage, who will contribute a specified portion of their gross salaries with an equal share from employers.
• However, the Bill proposes that employers with established private pension schemes be allowed to opt their workers out of the second tier contributions sparing them the burden of double saving for retirement.
• To minimise the pain of parting with a bigger portion of their pay, NSSF is proposing that workers gradually increase their contributions over four years period should Parliament pass the law.