Saturday, July 27, 2024
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The Supreme Court upholds the higher deduction of new NSSF rates halted by appeals court

 

Supreme court of Kenya

The new National Social Security Fund (NSSF) monthly charge is being deducted, and the Supreme Court has refused to block it.

The court said that in order to resolve the primary issue, it would be in the public interest to consider and decide the combined appeal first.

The appeal, according to the Supreme Court, is debatable.

The County Pensioners Association appealed to the Supreme Court after the Court of Appeal upheld the NSSF’s right to raise workers’ monthly payments beginning March 9, 2023.

By virtue of NSSF Act 203, the monthly contributions to the fund increased by 98%.

Three appellate judges overturned a High Court ruling declaring the NSSF Act 2013 to be illegal in February, citing a lack of public participation and the Senate’s lack of agreement throughout the legislative process.

The three Court of Appeal justices, Hannah Okwengu, Mohamed Warsame, and John Mativo, put an end to a legal battle that had been raging since 2014 by ruling that the NSSF Act of 2013 was legitimate and constitutional.

According to the new legislation, workers’ contributions to the NSSF, which their employers matched, increased tenfold for those who were already paying Ksh. 200 in statutory deductions each month.

For individuals making less than Ksh. 15,000 per month, deductions are now Ksh. 350; for those making more, deductions are Ksh. 900; and for those making Ksh. 18,000 and above, deductions are Ksh. 1,080, which their employers match.