The New 2026 NSSF Rates: How to Calculate Your Deduction
Effective February 1, 2026, the National Social Security Fund enters its 4th year of phased implementation. Here is what is changing and how it impacts your net pay.
What’s Changing in 2026?
The contribution rate remains 12% of pensionable earnings (shared 6% by employee and 6% by employer). However, the salary limits (Limits) have been adjusted upward:
Lower Earnings Limit (Tier I)
KSh 9,000
Was KSh 8,000 in 2025
Upper Earnings Limit (Tier II)
KSh 108,000
Was KSh 72,000 in 2025
How to Calculate (The 2-Tier System)
The total NSSF deduction is the sum of Tier I and Tier II contributions.
Example Calculation: Gross Salary KSh 50,000
*Note: The employer matches this amount, bringing the total monthly retirement saving to KSh 6,000.
Maximum Contribution for High Earners
For anyone earning **KSh 108,000 or above**, the deduction reaches the statutory cap.
- Tier I Max: KSh 540
- Tier II Max: 6% of (108,000 - 9,000) = KSh 5,940
- Total Max Deduction: KSh 6,480
Impact on Take-Home Pay
While the total deduction is higher, remember that NSSF is **tax-deductible**. This means it reduces your taxable income, slightly lowering the amount of PAYE you pay.
Is your Payroll Ready for February?
Failing to update these limits in your system by the next payroll cycle can lead to compliance audits and penalties. Bugigi Solutions can automate this transition for you.