Teachers employed by Teachers Service Commission (TSC)are still recovering from confusion after a raft of deductions was made on their July pay slips.

The Commission has activated its T-Pay portal and teachers are now accessing their payslips online.

Already a good number of teachers have received their July salaries with banks like Equity,KCB. Cooperative and Absa paying by today.

However, what is evident is that teachers are for the first time are seeing a National Social Security Fund (NSSF) deducted in their pay.

Intern teachers in primary and junior secondary schools were also not spared. Around one thousand shillings was deducted after the newly introduced deductions were made.

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Though some teachers received their salaries with the annual increment and others with arrears the deductions has shrunk the overall net pay significantly.

We asked some experts why are teachers subjected to two health insurance covers (NHIF and AON Minet) and now a NSSF deduction when they are already paying 7.5% of their basic pay for provident fund.

According to an NSSF official, it is a responsibility of every Kenyan citizen to contribute towards the NHIF cover as well as the NSSF fund.

Whether one will have an additional fund towards another social security or health cover its their own choice, he says.

The NSSF act was passed in 2013 by parliament way before the introduction of Provident fund making it mandatory for all employees to contribute Ksh.360 towards the scheme. It has since been battling a court case until 3rd February 2023 when the court ruled in its favour. The act is now a law and is being implemented by the government.

“Attention is drawn to Circular letter Ref. No.OP/CAB.1/BA dated 13th January,2021 from the Head of Public Service on implementation of the Public Service Superannuation Scheme (PSSS). In the circular under reference, clarification was made on the implementation of the PSSS and NSSF Acts,” reads a circular sent by the ministry of public service to all accounting officers.

“In addition,the Court of Appeal of Kenya dedlared that the National Social Security Fund (NSSF) Act No. 45 of 2013 is constitutional vide the ruling on 3rd February, 2023. This rulling made NSSF contributions mandatory for all employers and employees in the Public Service.

Further,Section 20 of the Act categorizes the employers and employees contributions into two tiers, namely Tier I and Tier II. All public servants are subject to Tier I mandatory contributions. This will require every employee to contribute Kenya Shillings three hundred and sixty (Ksh. 360) monthly while the employer contributes a similar amount (Kshs.360) for each employee. The Act requires all employers to deduct and remit monthly contribution to NSSF by the 9th day of every month,” continues the circular.

The purpose of this circular letter therefore, is to request you to ensure compliance with the provisions of the NSSF Act,2013 and contents of this circular with effect form 1st July,2023.

Starting January 2021, civil servants will suffer a pay cut for onward remittance in the newly created Public Service Super annuation Scheme. The move will be taken by the State to reducing the pension burden shouldered by the Exchequer.

The 7.5 % pension contribution will be implemented in three phases, beginning January 2021, where 2 % of the basic salary will be deducted till December 2021 . Beginning January 2022, the pension scheme will rise to 5 % of basic salaries.

Deductions of the final phase will be 7.5 % of the basic salaries and will begin in January 2023 till retirement. the government will be contributing the 15 % towards the pension scheme.

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Under the current pension scheme, civil servants, unlike workers in the private sector, do not contribute to their pension and their benefits are paid from taxes. Some highlights of the scheme include;

• This scheme will be rolled out from January 2021. The scheme will affect all civil servants including; teachers, police officers and prison officers.
• The scheme will affect employees who will be aged 45 years and below as at 1^st January 2021. Though the employees above 45 years who wish the scheme will be free to apply for inclusion in the new scheme or remain in the old one. The current Public Service Pension arrangement will be closed to all new employees.
• All those employed by the government will be required to contribute 7.5% of their basic pay towards the fund and the government to subside with a contribution of 15% towards the same.
• TSC has taken care to protect teachers against the negative effect this may have on the pay slips.
• The scheme will be implemented in a period of three years: In the first year, teachers will contribute 2% of their basic salary and the government will contribute 15%. During the first year of implementation, the male teachers will be cushioned by stopping WCPS deductions. In the second year, the teacher will contribute 5%, and the government 15%.Finally in the third year, the teacher will be deducted 7.5% but the government will give 15%. This will then be effected till the teacher retires.
• The contribution will be deducted from the salary before tax is calculated. This will reduce the tax level and improve the pay of an employee, alongside helping the employee to evade double taxation of pension contributions and payouts.

The teachers’ basic pay after second phase of pension deductions are tabulated below. The pay however maybe higher in case SRC approves TSC CBA counter proposal.

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Starting January 2021, civil servants will suffer a pay cut for onward remittance in the newly created Public Service Super annuation Scheme. The move will be taken by the State to reducing the pension burden shouldered by the Exchequer.

The 7.5 % pension contribution will be implemented in three phases, beginning January 2021, where 2 % of the basic salary will be deducted till December 2021 . Beginning January 2022, the pension scheme will rise to 5 % of basic salaries.

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Under the current pension scheme, civil servants, unlike workers in the private sector, do not contribute to their pension and their benefits are paid from taxes. Some highlights of the scheme include;

• This scheme will be rolled out from January 2021. The scheme will affect all civil servants including; teachers, police officers and prison officers.
• The scheme will affect employees who will be aged 45 years and below as at 1^st January 2021. Though the employees above 45 years who wish the scheme will be free to apply for inclusion in the new scheme or remain in the old one. The current Public Service Pension arrangement will be closed to all new employees.
• All those employed by the government will be required to contribute 7.5% of their basic pay towards the fund and the government to subside with a contribution of 15% towards the same.
• TSC has taken care to protect teachers against the negative effect this may have on the pay slips.
• The scheme will be implemented in a period of three years: In the first year, teachers will contribute 2% of their basic salary and the government will contribute 15%. During the first year of implementation, the male teachers will be cushioned by stopping WCPS deductions. In the second year, the teacher will contribute 5%, and the government 15%.Finally in the third year, the teacher will be deducted 7.5% but the government will give 15%. This will then be effected till the teacher retires.
• The contribution will be deducted from the salary before tax is calculated. This will reduce the tax level and improve the pay of an employee, alongside helping the employee to evade double taxation of pension contributions and payouts.

The teachers’ basic pay after second phase of pension deductions are tabulated below. The pay however maybe higher in case SRC approves TSC CBA counter proposal.

Starting January 2021, civil servants will suffer a pay cut for onward remittance in the newly created Public Service Super annuation Scheme. The move will be taken by the State to reducing the pension burden shouldered by the Exchequer.

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Teachers’ Basic Salary Scales After Phase 2 of Pension Deductions

Teachers’  Basic Salary Scales After Final Phase of Pension Deductions

Quick Facts about the January Contributory Pension Scheme As WCPS Contribution Ends 

Why TSC May Renew Internship contracts With current interns

Top 10 subject Combinations With the Highest TSC Internship Employability Rates in 2020

Years of Graduation Likely to Win in the 2020 TSC internship interviews Per Subject Combination

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Under the current pension scheme, civil servants, unlike workers in the private sector, do not contribute to their pension and their benefits are paid from taxes. Some highlights of the scheme include;

• This scheme will be rolled out from January 2021. The scheme will affect all civil servants including; teachers, police officers and prison officers.
• The scheme will affect employees who will be aged 45 years and below as at 1^st January 2021. Though the employees above 45 years who wish the scheme will be free to apply for inclusion in the new scheme or remain in the old one. The current Public Service Pension arrangement will be closed to all new employees.
• All those employed by the government will be required to contribute 7.5% of their basic pay towards the fund and the government to subside with a contribution of 15% towards the same.
• TSC has taken care to protect teachers against the negative effect this may have on the pay slips.
• The scheme will be implemented in a period of three years: In the first year, teachers will contribute 2% of their basic salary and the government will contribute 15%. During the first year of implementation, the male teachers will be cushioned by stopping WCPS deductions. In the second year, the teacher will contribute 5%, and the government 15%.Finally in the third year, the teacher will be deducted 7.5% but the government will give 15%. This will then be effected till the teacher retires.
• The contribution will be deducted from the salary before tax is calculated. This will reduce the tax level and improve the pay of an employee, alongside helping the employee to evade double taxation of pension contributions and payouts.

The 7.5 % pension contribution will be implemented in three phases, beginning January 2021, where 2 % of the basic salary will be deducted. The teachers’ basic pay after the deductions are tabulated below. In the same month, widows and children pension scheme( WCPS), which is usually contributed by male teachers, will cease to exist in teachers’ pay slips.