How to Pay NSSF via MPesa
This article is about how to Pay NSSF via MPesa. The National Social Security Fund (NSSF) was established in 1965 to provide basic financial security benefits to Kenyans after retirement and has branches in Kenya. Every employer must register with the Fund. Any employer who fails to register with the NSSF will be subject to a fine not exceeding fifty thousand Kenya shillings. The pension contribution amounts to 12% of the pensionable salary and is made up of two equal parts: 6% paid by the employee and 6% paid by the employer. The employee’s contribution comes directly from the salary and wages, while the employer’s contribution comes from the employer.
- What are the NSSF fees?
- How to pay NSSF via Mpesa?
- Does late payment of the NSSF lead to penalties?
What are the NSSF fees?
How to Pay NSSF via M-pesa According to NSSF Act 45 of 2013, the upper income limit will be Ksh. 18000, while the lower income limit will be Ksh. 6000.
The pension contribution will be 12% of the pensionable salaries and wages. Monthly NSSF fees are deducted equally between employer and employee. Therefore, the employer pays 6% and the employee pays the remaining 6%. Employee contributions will be deducted directly from their wages and salaries, while employer contributions will come from employers.
How to pay NSSF via Mpesa?
Since M-pesa is a common payment method in Kenya, most people use it to make their monthly contributions to the NSSF.
Below are the steps on how to make payment:
- Open your Mpesa menu and go to Lipa na Mpesa
- Select the payment invoice option
- Enter the paybill number (333300)
- Enter your account number (your NSSF number)
- Enter the amount you wish to contribute
- Finally, enter your Mpesa PIN code and complete the transaction.
How to pay NSSF via M-Pesa is an issue that needs to be fully addressed. The National Social Security Fund (NSSF) is an agency of the Kenyan government. It is responsible for the collection, distribution and investment of pension funds for formal and informal employees in Kenya. Therefore, both sectors contribute a certain percentage of their income to the NSSF. The amount of the contribution depends on the rates for that year. Rates are based on NSSF Law 45 of 2013.
Does late payment of the NSSF lead to penalties?
The NSSF payment method via M-Pesa must be deducted and submitted in full by the 15th of every month. However, late payment of monthly contributions will generate a fine equal to 5% of the total contributions for each month or part of a month in which the employer or employee has not paid their contribution.
In summary, it is important to make monthly contributions to the NSSF. Many employers and employees may be wondering how to calculate their monthly contributions. This has been made quick and easy with an online NSSF calculator.
NSSF contact info
National Social Security Fund (NSSF) helplines: 0709 583 000, 0730 882 000