Glossary term
NSSF (National Social Security Fund)
NSSF (National Social Security Fund) is Kenya's pension scheme for employees. Under the NSSF Act 2013 an employer deducts 6% of pensionable pay and matches it, split across two tiers.
NSSF is the retirement pot a fundi builds while working. The employer deducts the worker's share and adds an equal share, so every wage day also adds to that fundi's pension.
Updated October 17, 2026 · Glossary
How NSSF is calculated
Under the NSSF Act 2013 the contribution is 6% of pensionable pay in two tiers. Tier I is 6% of pay up to KES 8,000, a maximum of KES 480. Tier II is 6% of earnings between KES 8,001 and KES 72,000, a maximum of KES 3,840. The employer matches the employee's total.
What this means for site workers
For a fundi on casual daily wages, pensionable pay is the wages earned in the month. Short weeks mean small contributions; a full month means the full tiers apply. Because the amounts change week to week, the deduction is easiest to get right when the muster roll is accurate.
Filing and deadlines
NSSF is filed monthly and due by the 9th of the following month, alongside PAYE, SHIF and the Affordable Housing Levy. Late or missing returns expose an employer to penalties, which is why most contractors let payroll software calculate and file the return.
Frequently asked questions
Is NSSF the same as NHIF or SHIF?
No. NSSF is a pension fund, while SHIF is health cover. They are separate deductions and separate returns, both filed monthly by the 9th.
Do casual workers get NSSF?
Employers are required to register and contribute for their employees, and casual site workers engaged on a continued basis fall within that. Record days worked and wages so contributions are calculated correctly.
What are the NSSF Tier I and Tier II limits?
Tier I is 6% of pensionable pay up to KES 8,000, capped at KES 480. Tier II is 6% of earnings between KES 8,001 and KES 72,000, capped at KES 3,840. The employer matches the total.
Keep reading
Guides
NSSF Contributions Guide
Tier I and Tier II NSSF contributions explained for construction payroll — rates, earnings limits, casual workers and the monthly deadline.
Product
Automated Statutory Deductions
FundiPay calculates PAYE, NSSF, SHIF and the Affordable Housing Levy per worker and prepares the returns, keeping site payroll compliant.
Guides
PAYE for Construction Workers
How PAYE works for Kenyan construction crews — tax bands, personal relief, casual daily wages, and the mistakes that trip up site payrolls.