This is Why Teachers Will Not be Saved From the Just Introduced NSSF Deductions
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.
