What Is NSSF?
The National Social Security Fund is a Kenyan government agency responsible for the collection, safekeeping, responsible investment and distribution of retirement funds of employees in both the formal and informal sectors of the Kenyan Economy. Participation for both employers and employees is compulsory.
How To Calculate NSSF In Uganda?
NSSF contribution rates comprise a total of 12% of the employee’s entire pensionable salaries and wages. NSSF monthly rates are divided into two equal parts whereby the employer pays 6%, and the employee pays the remaining 6%.
Is NSSF Calculated On Gross Salary In Uganda?
NSSF is deducted monthly and the employee contributed 5% of their gross salary while the employer contributes 10% of the employee’s gross salary.
How Is NSSF Computed In Uganda?
The total contribution is 15% of the employees’ gross salary, of which 10% is paid by the employer and 5% is paid by the employee. Interest is computed based on the opening balances of the members’ funds less benefit paid during the year.
What Percentage Of Salary Goes To NSSF In Uganda?
It is the obligation of the employer to remit contributions to the Fund for his/her employees every month. The employer must deduct 5% from the employee’s total gross monthly wage and add 10% of the total gross monthly wage making a total contribution of 15% for each employee.
How Much Is NSSF Contribution Per Month In Uganda?
Employees contributions range from 360 shillings to a maximum of 1080 shillings per month for the first year. Employers will also be contributing an equal amount as yours towards your future. Voluntary contributor: Your minimum monthly contributions are now 200 shillings 100 shillings.
What Is The Percentage Of NSSF In Uganda In Uganda?
The NSSF is a defined contribution scheme and is financed largely by contributions from employers and employees. The total contribution is equal to 15 percent of an employee’s gross salary, with the employer contributing 10 percent and the employee 5 percent.
Can I Withdraw My NSSF Money Before Retirement In Uganda?
However a person will only be required to pay tax on his / her pension if the money is withdrawn from the fund before the member is 60 years of age.
Is It Mandatory To Pay NSSF In Uganda?
An employer shall pay contributions to the Pension Fund in respect of each employee in his or her employment as prescribed in Section 20 of the Act.
Is NSSF Voluntary In Uganda?
The NSSF Voluntary Membership Plan provides employers and workers not compelled by the mandatory provisions of the NSSF Act the opportunity to save voluntarily for their retirement.
When Can I Withdraw My NSSF Money In Uganda?
Eligibility: Members are eligible for this benefit when they reach the age of 55 years, or when they ultimately retire from regular employment.
How NSSF Uganda Works?
NSSF offers free banking. Ugandans can enrol in an NSSF voluntary membership plan to make a monthly payment of contributions to the fund based on their income and life aspirations. The NSSF fund allows such members to change the amount they wish to contribute.
Is NSSF Taxable In Uganda?
In other words, contributions to NSSF will be tax exempt which isn’t the case today. For example, if you earn one million shillings per month, URA will only tax their 30% on the balance after deducting NSSF which is better than the current practice.
How Much Does NSSF Pay On Retirement In Uganda?
A new NSSF Act became law. In this new law, pension contributions increased to 12% of the pensionable wages made up of two equal portions of 6% from the employee and 6% from the employer subject to an upper limit of UGX 69367.24 for employees earning above UGX 578060.32.