The National Social Security Fund (NSSF) is set to initiate the deduction of increased rates in accordance with a recent ruling by the Supreme Court. Despite the court's decision to order a reevaluation of the case challenging the new rates at the Appellate Court, NSSF has announced plans to proceed with the implementation of the deductions.

In a notice released on Friday, NSSF instructed employers to apply the new rates in the February payslips of their employees. The organization clarified that the Supreme Court ruling did not invalidate the Court of Appeal's earlier orders issued on February 3, 2023.

"The Supreme Court has not overturned the Court of Appeal Orders delivered on February 3, 2023. Consequently, the National Social Security Fund Act No. 45 of 2013 remains valid. We reaffirm the Notice issued to Employers on January 12, 2024, regarding remittance of NSSF contributions in line with the Act. The Fund remains committed to upholding the rule of law and ensuring compliance with all legal obligations while serving the best interests of our stakeholders," the notice stated.

The Supreme Court directed the case to be reheard at the Appellate Court due to the lower court's failure to address certain legal complexities raised in the appeal.

"As a result, this case is to be remanded to the Court of Appeal for a reconsideration of the substantive merits of the ELRC Judgment. Given the nature of the matter, its significant public interest, and the time consumed in legal proceedings, it is advisable that the case be expedited," the judgment outlined.

Consequently, employed individuals in Kenya can expect reduced income this month as the new deductions take effect. Employers are also mandated to contribute towards their employees' social security.

Under the revised deduction scheme, individuals earning Ksh20,000 will witness an increase in deductions from Ksh1,080 to Ksh1,200. Those earning Ksh30,000 will see their deductions rise from Ksh1,080 to Ksh1,800. Meanwhile, individuals earning between Ksh36,000 and Ksh50,000 will have Ksh2,160 deducted from their salaries.

Similarly, those earning Ksh100,000 will also have Ksh2,160 deducted, compared to the previous deduction of Ksh1,080.