The NSSF Act of 2013 raises the upper earnings limit to Sh108,000 from Sh72,000, pushing employee contributions to 6% of pensionable pay up to that cap—matched by employers. A Sh100,000 earner faces Sh6,000 deducted instead of Sh4,320, while Sh200,000 salaries lose up to Sh6,480; lower earners under Sh50,000 see minimal shifts.
These join taxes, 1.5% Housing Levy, and 2.75% SHIF, dropping net pay like Sh50,000 to Sh39,270 or Sh1 million to Sh647,500. Frustration grows over rising costs of living and stagnant wages amid aims to bolster retirement savings, where over 70% of retirees hold under Sh250,000.