NSSF increment plan hits another barrier.
President William Ruto’s NSSF increment plan hits another barrier. This comes after the Federation of Kenya Employers (FKE) requested NSSF to put a hold on the implementation.
President Ruto had seen it fit to increase the NSSF contribution to ksh. 2160 in order to develop a saving culture in Kenyans and also do away with retirement poverty.
However, According to the federation of Kenya employees, employers have a right to know pension amount the employees will earn and the option of the employees and employers to opt out of the pensionable fund.
FKE stated,” The employers need clarity on taxing pension benefits. Why save for the worker and then take 30 per cent away from them when he or she accesses her benefits?This defeats the purpose of saving for a pension.”
FKE president also appealed to the government, to have a dialogue regarding the NSSF issue before making changes to the new contribution.
FKE president stated,”We appeal to the government to embrace more dialogue in resolving NSSF issues. Let the parties engage in good faith and get an agreeable way forward that will move the country ahead on the establishment of the universal social protection system in Kenya.”
This concern comes after the Court of Appeal agreed to the implementation of the NSSF Act No 45 of 2013 on February 9 2023.