Statutory and Legal

How to Pay NSSF via M-Pesa

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How to pay NSSF via M-Pesa is a question that needs to be addressed in full. The National Social Security Fund(NSSF) is a Kenyan government agency. It is responsible for collecting, distributing, and investing retirement funds for both formal and informal employees in Kenya. So, both the sectors contribute a certain percentage of their income to NSSF.

The amount contributed depends on that year’s rates. The rates are based on the  NSSF Act  45 of 2013. 

 

What are the NSSF rates?

How to pay NSSF via M-pesa according to the NSSF Act 45 of 2013, the Upper Earning Limit will be Ksh. 18000 while the Lower Earning Limit will be Ksh. 6000. The pension contribution will be 12% of the pensionable salaries and wages.  The NSSF monthly rates  deducted equally between the employer and employee. Therefore, the employer pays 6% and the employee pays the other 6%. The employees’ contributions will be deducted directly from their salaries and wages while the employers’ contributions shall come from the employers.

 

How to pay NSSF via Mpesa?

With M-pesa being a common method of payment in Kenya, most people use it to make their monthly NSSF contributions. Below are steps on how to make the payment:

  1. Open your Mpesa Menu and go to Lipa na Mpesa
  2. Select Paybill option
  3. Enter the Paybill number(333300)
  4. Enter your account number( Your NSSF number)
  5. Input  the amount you want to contribute
  6. Finally,  put in your  Mpesa pin number and complete the transaction.

 

Does the Late Payment of NSSF attract any penalties?

How to pay NSSF via M-Pesa should be deducted and submitted in full by the 15th of every month.  However, late payment of the monthly contributions will attract a 5% penalty of the total contributions for each month or part of the month the employer or employee has failed to pay their contribution.

 

Finally. .

To sum up, making the monthly NSSF contributions is important. Many employers and employees may wonder how they can calculate their monthly contributions. This has been made easy and fast with an online NSSF calculator. 

Read more NOW! to stay informed on Everything you don’t know about New 2002 PAYE rates or Whether statutory deductions such as NSSF, NHIF and PAYE offer any benefit?

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