Kenya’s National Social Security Fund (NSSF) continues its phased implementation of the NSSF Act 2013, introducing new contribution limits effective 1 February 2026.

These changes increase the pensionable earnings limits, meaning both employers and employees may see higher NSSF contributions depending on salary levels.

For HR and payroll teams, it is important to understand how these changes affect payroll calculations and employee deductions.

Background: NSSF Act 2013

The NSSF Act 2013 transformed NSSF into a mandatory pension scheme designed to enhance retirement savings for Kenyan workers.

Under the Act:

• Total contributions equal 12% of pensionable earnings
• 6% is contributed by the employee
• 6% is contributed by the employer

The implementation of the Act has been phased since 2023, gradually increasing the pensionable earnings limits each year.

What Changes in February 2026

Effective 1 February 2026, both the Lower Earnings Limit (LEL) and Upper Earnings Limit (UEL) will increase.

Although the 6% contribution rate remains unchanged, the expanded earnings bands mean employees earning above the lower threshold will contribute more to NSSF.

New NSSF Contribution Structure

Tier	Earnings Range	Employee (6%)	Employer (6%)	Total
Tier I	Up to KES 9,000	540	540	1,080
Tier II	KES 9,001 – 108,000	5,940	5,940	11,880
Total Maximum	—	6,480	6,480	12,960

This means the maximum monthly NSSF contribution will increase to KES 12,960 (KES 6,480 each from employer and employee).

How NSSF Contributions Have Increased Over Time

The phased implementation has gradually increased contribution limits each year.

Year	Lower Earnings Limit	Upper Earnings Limit	Total Contribution
2023	6,000	18,000	2,160
2024	7,000	36,000	4,320
2025	8,000	72,000	8,640
2026	9,000	108,000	12,960

This progression reflects the government’s goal of strengthening retirement savings through higher pension contributions.

Impact on Employees’ Salaries

The new NSSF limits will affect employees differently depending on their income levels.

Example 1: Employee earning KES 50,000

• Tier I: 6% × 9,000 = 540
• Tier II: (50,000 – 9,000) × 6% = 2,460

Total employee deduction = KES 3,000

Example 2: Employee earning above KES 108,000

• Tier I: 6% × 9,000 = 540
• Tier II capped at 108,000: 5,940

Total employee deduction = KES 6,480

These examples illustrate how contributions increase for employees earning above the lower earnings limit.

Implications for Employers

The new NSSF rates have several implications for employers and HR teams.

1. Payroll Adjustments

Organizations must update payroll systems to apply the new lower and upper earnings limits.

2. Budget Planning

Employer contributions will increase for employees earning above the lower earnings limit.

3. Employee Communication

HR teams should inform employees about changes to their NSSF deductions.

4. Compliance

Accurate payroll deductions and timely remittance to NSSF remain essential to avoid penalties.

What Employees Should Expect

Employees should be aware that:

• NSSF deductions may increase slightly depending on salary
• Take-home pay may reduce marginally
• Retirement benefits will improve over time due to higher contributions

Employees are encouraged to review their payslips to confirm that deductions are applied correctly.

How Zuri HR Helps Businesses Stay Compliant

Changes in statutory deductions can make payroll management challenging for organizations.

Zuri HR simplifies payroll compliance by:

• Automatically applying updated statutory rates
• Calculating NSSF contributions based on the latest limits
• Generating compliant payslips
• Integrating payroll with employee records and attendance

With automated payroll calculations, organizations can ensure they remain compliant with Kenyan statutory requirements without manual updates.

Conclusion

The new NSSF rates effective February 2026 represent the next phase of Kenya’s pension reform, increasing retirement contributions and expanding pensionable earnings limits.

While these changes may slightly increase payroll deductions, they strengthen long-term retirement benefits for employees.

Organizations should review their payroll systems and ensure the updated contribution limits are applied correctly.

Modern payroll systems such as Zuri HR help organizations automate statutory deductions and maintain compliance with evolving regulations.

As part of our expansion across Africa, Zuri HR is now serving businesses in Namibia, bringing modern HR and Payroll technology to organizations looking for a simpler way to manage their workforce.

Zuri HR combines essential HR functions in one centralized platform while adapting payroll to the statutory requirements of the Namibian market.

Everything Your HR Team Needs in One Platform

Zuri HR helps businesses manage their day-to-day HR operations through:

• Attendance Management – monitor employee attendance and working hours.
• Leave Management – manage leave requests, approvals and balances.
• HR Calendar – organize important employee activities and HR events.
• Performance Management – manage employee reviews and performance tracking.
• Employee Data Management – keep employee records accurate and accessible.

Having these functions in one system reduces manual administration and gives HR teams better visibility over their workforce.

Payroll Built for Namibia

Payroll requirements vary from one country to another. That is why Zuri HR maintains a consistent HR experience while localizing payroll to the statutory requirements of each market.

For Namibia, payroll supports key statutory requirements including NamRA and NSSF/Social Security.

NamRA – Namibia Revenue Agency

Zuri HR supports PAYE payroll processing in line with Namibia’s tax environment. Employers are required to deduct employees’ tax from remuneration and remit it to NamRA. NamRA also requires employers to submit payroll-related returns and provide employees with PAYE 5 tax certificates.

This makes accurate payroll calculations and reliable employee records essential for businesses operating in Namibia.

NSSF – Social Security

Zuri HR also supports applicable Social Security contributions, helping businesses manage employee and employer obligations through the payroll process.

Namibia’s Social Security framework requires eligible employees to be registered with the Social Security Commission, with contributions made by both employees and employers.

One Platform. Localized Payroll. Smarter HR.

With Zuri HR Namibia, businesses can manage attendance, leave, HR activities, performance, employee information and payroll from one platform.

Our expansion into Namibia is part of Zuri HR’s wider vision to provide businesses across Africa with HR technology that combines consistent workforce management with payroll adapted to local requirements.

Whether you operate a growing business in Namibia or manage teams across several African countries, Zuri HR helps simplify HR and payroll administration as your organization grows.

Zuri HR Namibia

Smarter HR. Simplified Payroll. Built for Africa.

www.zurihr.com
info@zurihr.com

As part of our expansion across Africa, Zuri HR is now serving businesses in Botswana, providing a centralized platform for managing essential HR operations and payroll.

Our goal is simple: help businesses reduce manual HR work, improve employee management, and process payroll using requirements relevant to the Botswana market.

Complete HR Management in One Platform

Zuri HR brings essential HR functions together in one system:

• Attendance Management – monitor employee attendance and working hours.
• Leave Management – manage leave requests, approvals and balances.
• HR Calendar – organize important employee and HR activities.
• Performance Management – track employee performance and reviews.
• Employee Data Management – maintain accurate employee information in one place.

With these functions connected, HR teams can reduce reliance on spreadsheets and disconnected systems while gaining better visibility into their workforce.

Payroll Designed for Botswana

Payroll is different from country to country, which is why Zuri HR localizes its payroll functionality for each market.

For Botswana, payroll supports PAYE requirements administered by the Botswana Unified Revenue Service (BURS).

BURS requires employers to deduct PAYE from applicable employee remuneration and remit the tax to BURS. The applicable tax is determined using the official BURS tax tables, rather than applying one flat percentage to all salaries.

Zuri HR helps businesses manage these payroll calculations while maintaining employee payroll records and generating the information needed for payroll administration and statutory reporting.

BURS also provides specific payroll returns, including the ITW7A monthly PAYE remittance return and ITW10 annual PAYE return, making accurate payroll records an important part of the compliance process.

One HR Platform. Localized Payroll.

Zuri HR’s approach is to keep the core HR experience consistent while adapting payroll to each country’s requirements.

For businesses in Botswana, this means managing attendance, leave, HR activities, performance, employee information and payroll from one platform while supporting the country’s PAYE environment.

As Zuri HR continues expanding across Africa, we are building a platform that combines modern HR technology with locally relevant payroll capabilities.

Zuri HR Botswana

Smarter HR. Simplified Payroll. Built for Africa.

www.zurihr.com
info@zurihr.com

As part of our expansion across Africa, Zuri HR is now serving businesses in Tanzania, providing an integrated platform for managing HR operations and payroll from one centralized system.

Zuri HR brings together essential HR functions while adapting payroll to the statutory requirements applicable in Tanzania, helping businesses reduce manual work, improve accuracy and manage their workforce more effectively.

Complete HR Management in One Platform

Zuri HR provides businesses with a consistent set of HR tools, including:

• Attendance Management – monitor employee attendance and working hours.
• Leave Management – manage leave requests, approvals and balances.
• HR Calendar – organize important employee and HR activities.
• Performance Management – track employee performance and reviews.
• Employee Data Management – keep employee information accurate and accessible.

Having these functions in one system gives HR teams better visibility while reducing reliance on spreadsheets and disconnected processes.

Payroll Built for Tanzania

While the core HR modules remain consistent across Zuri HR’s markets, payroll is localized to meet the statutory and tax requirements of each country.

For Tanzania, Zuri HR supports payroll processes around key statutory requirements including:

TRA – Tanzania Revenue Authority

Zuri HR supports payroll tax calculations and reporting related to PAYE and Tanzania Revenue Authority (TRA) requirements, helping businesses manage employee tax obligations as part of their monthly payroll process.

NSSF – National Social Security Fund

Payroll also incorporates applicable NSSF contributions, helping organizations manage social security deductions and employer obligations alongside their regular payroll processing.

NHIF – National Health Insurance Fund

Zuri HR supports applicable health insurance contributions and payroll processing requirements, helping businesses maintain accurate employee deductions and payroll records.

SDL – Skills Development Levy

Zuri HR also supports the Skills Development Levy (SDL) as part of Tanzania’s payroll statutory processes, helping employers account for applicable statutory obligations.

WCF – Workers Compensation Fund

The platform also supports WCF-related payroll requirements. WCF contributions are an employer obligation and are not deducted from employees’ salaries. The Workers Compensation Fund provides compensation services for employees affected by work-related injuries, diseases or death.

One Platform. Localized Payroll. Smarter HR.

Zuri HR’s approach is simple: keep core HR management consistent while adapting payroll to the requirements of each African market.

For businesses in Tanzania, this means managing attendance, leave, performance, employee data and payroll from one platform while supporting important local statutory requirements such as TRA, NSSF, NHIF, SDL and WCF.

Our expansion into Tanzania is another step toward our vision of providing businesses across Africa with modern, reliable and locally relevant HR technology.

Zuri HR Tanzania

Smarter HR. Simplified Payroll. Built for Africa.

www.zurihr.com
info@zurihr.com

As part of its expansion across Africa, Zuri HR is now serving businesses in Uganda, providing an integrated platform for managing HR operations and payroll from one centralized system.

Zuri HR combines essential HR functions with payroll designed to support Uganda’s local statutory requirements, helping organizations reduce manual processes and manage their workforce more efficiently.

Complete HR Management in One Platform

Zuri HR provides businesses with a consistent set of HR tools across its African markets, including:

• Attendance Management – monitor employee attendance and working hours.
• Leave Management – manage leave requests, approvals and balances.
• HR Calendar – keep track of important HR activities and employee events.
• Performance Management – manage employee reviews and performance tracking.
• Employee Data Management – maintain accurate employee information in one centralized system.

By bringing these functions together, HR teams can spend less time managing spreadsheets and disconnected systems and more time focusing on their people.

Payroll Built for Uganda

While the core HR modules remain consistent across Zuri HR’s markets, payroll is localized to reflect the statutory requirements of each country.

For Uganda, Zuri HR’s payroll is designed around key payroll obligations including:

URA – Uganda Revenue Authority

Zuri HR supports Uganda’s PAYE calculations, helping employers calculate and manage employee tax deductions based on applicable PAYE rules. The Uganda Revenue Authority states that employers are responsible for withholding and remitting PAYE, with monthly returns and payments generally due by the 15th of the following month.

NSSF – National Social Security Fund

Payroll also incorporates applicable NSSF contributions, helping businesses manage employee and employer social security obligations as part of their payroll process. URA guidance confirms that the employee NSSF contribution is considered separately from PAYE calculations.

LST – Local Service Tax

Zuri HR also accounts for Local Service Tax (LST) within the Uganda payroll process. LST is deductible before computing PAYE, according to Uganda Revenue Authority guidance.

This localization allows businesses in Uganda to manage payroll using calculations that reflect the country’s specific statutory environment.

One Platform. Localized Payroll. Smarter HR.

Zuri HR’s approach is simple: keep core HR management consistent while adapting payroll to the requirements of each African market.

For businesses in Uganda, this means managing attendance, leave, performance, employee data and payroll from one platform while supporting important local payroll requirements such as URA, NSSF and LST.

As Zuri HR continues expanding across Africa, our goal is to provide businesses with modern HR technology that is simple, scalable and locally relevant.

Zuri HR Uganda

Smarter HR. Simplified Payroll. Built for Africa.

www.zurihr.com
info@zurihr.com

As part of our expansion across Africa, Zuri HR is now bringing its integrated HR and Payroll platform to businesses in Zambia, helping organizations simplify workforce management while adapting payroll to Zambia’s statutory requirements.

Complete HR Management in One Platform

Zuri HR brings essential HR processes together in one centralized system, including:

• Attendance Management – monitor employee attendance and working hours.
• Leave Management – manage leave requests, approvals and balances.
• HR Calendar – keep track of important employee and HR activities.
• Performance Management – structure employee reviews and performance tracking.
• Employee Data Management – maintain accurate employee information in one place.

By bringing these functions together, Zuri HR helps HR teams reduce manual processes and improve visibility across their workforce.

Payroll Built for Zambia

While the core HR modules remain consistent across our markets, payroll is localized to meet the statutory requirements of each country.

For Zambia, Zuri HR supports payroll processes around key statutory requirements administered by:

ZRA – Zambia Revenue Authority
ZRA administers PAYE, where employers calculate and deduct tax from employees’ employment earnings before remitting it to the Authority.

NAPSA – National Pension Scheme Authority
Zuri HR can support payroll calculations and reporting around NAPSA contributions. For formal-sector employees, NAPSA currently states that contributions are shared between the employee and employer.

NHIMA – National Health Insurance Management Authority
Payroll processing also accounts for applicable NHIMA deductions and reporting requirements, helping businesses manage their statutory payroll obligations from within their HR system.

One Platform. Localized Payroll. Smarter HR.

Zuri HR’s approach is simple: keep core HR management consistent while adapting payroll to the requirements of each African market.

For businesses in Zambia, this means managing attendance, leave, performance, employee information and payroll from one platform while supporting Zambia-specific payroll requirements.

As Zuri HR continues expanding across Africa, our goal is to give businesses modern HR technology that is simple, scalable and designed with local payroll requirements in mind.

Zuri HR Zambia

Smarter HR. Simplified Payroll. Built for Africa.

www.zurihr.com
info@zurihr.com