Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Read the bill its not hard to understand. Take time and stop being lazy "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 10/29/2009 Posts: 40
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murchr wrote:Read the bill its not hard to understand. Take time and stop being lazy Any idea on the commencement date? Having read the Bill and previous articles in the media, can someone confirm the reference to 1.2% etc as there is a schedule III which has a THE TABLE Year Lower Earnings Limit Upper Earnings Limit 1 6,000 50% of National Average Earnings 2 7,000 1 times National Average Earnings 3 8,000 2 times National Average Earnings 4 9,000 3 times National Average Earnings Year 5 onwards Lower Earnings Limit as provided in regulation 2(a) of this Schedule 4 times National Average Earnings
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Rank: Member Joined: 10/29/2009 Posts: 40
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Njung'e wrote:We raved and ranted over nothing......After carefully perusing the new law,it's clear that the deduction is six per cent of your monthly pay ,subject to a maximum of KSh 8,600 being the national average minimum wage.Thus,whether you earn 1M, 10M or 10K,deductions will be a maximum Kshs 512 up from Kshs 200.The same will be graduated in 5 instalments of 1.2% for 2014,2.4% in 2015,3.6% in 2016,4.8% in 2017 and finally 6% in 2018.......Who will pay for all the hats you chewed?lol Have the numbers in the bill schedule III been provided somewhere ?
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Rank: Elder Joined: 3/19/2010 Posts: 3,505 Location: Uganda
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murchr wrote:Read the bill its not hard to understand. Take time and stop being lazy I'm a polished finance person but this bill generates more heat than light.Very vague. tell me if my gross salary is say 70000 how much nssf will I pay? please quote the exact section of the act as basis of your calculations. punda amecheka
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Rank: Elder Joined: 3/19/2010 Posts: 3,505 Location: Uganda
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murchr wrote:Read the bill its not hard to understand. Take time and stop being lazy I'm a polished finance person but this act generates more heat than light.Very vague. @njunges /daily nation figures are also confusing.see the comments on nation. co.ke. newfarer wrote:does it mean the rates will be reduced from 200/- now to 8600x1.2%= 103/- from 2014? tell me if my gross salary is say 70000 how much nssf will I pay? please quote the exact section of the act as basis of your calculations. punda amecheka
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Rank: Elder Joined: 2/26/2008 Posts: 4,449
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murchr wrote:ecstacy wrote:Njung'e wrote:We raved and ranted over nothing......After carefully perusing the new law,it's clear that the deduction is six per cent of your monthly pay ,subject to a maximum of KSh 8,600 being the national average minimum wage.Thus,whether you earn 1M, 10M or 10K,deductions will be a maximum Kshs 512 up from Kshs 200.The same will be graduated in 5 instalments of 1.2% for 2014,2.4% in 2015,3.6% in 2016,4.8% in 2017 and finally 6% in 2018.......Who will pay for all the hats you chewed?lol I have generally come to appreciate in 2013 that the Kenyan media ni buure kabisa. Fake reporting galore. They need to fully research their topics and at least read those bills they are very quick to headline! Notice their over exergerration on the digital migration thing...i stopped relying on the media long time ago unfortunately many Kenyans believe in the press Exactly. Had dinner with the Managing Editor for one of the publications and was pleasantly surprised he admitted (off record ofcourse)that the Kenyan media standards were really wanting..promised upcoming changes in his work domicile.
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Rank: Member Joined: 10/29/2009 Posts: 40
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newfarer wrote:murchr wrote:Read the bill its not hard to understand. Take time and stop being lazy I'm a polished finance person but this bill generates more heat than light.Very vague. tell me if my gross salary is say 70000 how much nssf will I pay? please quote the exact section of the act as basis of your calculations. I estimate that for you as an employee your share of pension contribution is Kshs 4,200 per month in year one subject to some details being clarified. The bill separates employer and employee contributions as such begin with sec.20(1)(a) and (b)and sec 20(2) both reproduced here 20. (1) From the commencement date and subject to the provisions of subsection (3) and section 21, an employer shall pay to the Pension Fund in respect of each employee in his or her employment- (a) the employer’s contribution at six per centum of the employee’s monthly pensionable earnings; and (b) the employee’s contribution at six per centum of the employee’s pensionable earnings deducted from the employee’s earnings. (2) Notwithstanding the provisions of subsection (1), the contributions in the first five years shall be deducted in accordance with the Third Schedule. Then refer to the definitions reproduced here “Tier I Contributions” means for any month, contributions in respect of Pensionable Earnings up to the Lower Earnings Limit; “Tier II Contributions” means for any month, contributions in respect of Pensionable Earnings above the Lower Earnings Limit and “pensionable earnings” means for a Pension Fund Member, the lower of the member’s monthly wages and the Upper Earnings Limit; Therefore if you earn Shs 70,000 , we assume as we do not know from the schedule III that the Upper earnings limit is your pensionable earnings (i believe this will be clarified in time) As such you contribution is 12% of 70,000/= which is Kshs8,400, then divide this into two (that is Kshs 4,200) as you contribute 6% and your employer 6%, therefore you deduct Kshs 4,200/= as your pension contribution. Tier I is computed as 12% of the lower earnings limit which is (12% x Kshs6000)= Kshs720 divide by 2 to get 360/= (which is the share from you and an equivalent from your employer). The Kshs 6000 is obtained from schedule III of the act. My reading is therefore that an employee share of Tier II in this instance is 4200 - 360 =Kshs 3,840
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Rank: Elder Joined: 3/2/2009 Posts: 26,335 Location: Masada
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tutebeng wrote:newfarer wrote:murchr wrote:Read the bill its not hard to understand. Take time and stop being lazy I'm a polished finance person but this bill generates more heat than light.Very vague. tell me if my gross salary is say 70000 how much nssf will I pay? please quote the exact section of the act as basis of your calculations. I estimate that for you as an employee your share of pension contribution is Kshs 4,200 per month in year one subject to some details being clarified. The bill separates employer and employee contributions as such begin with sec.20(1)(a) and (b)and sec 20(2) both reproduced here 20. (1) From the commencement date and subject to the provisions of subsection (3) and section 21, an employer shall pay to the Pension Fund in respect of each employee in his or her employment- (a) the employer’s contribution at six per centum of the employee’s monthly pensionable earnings; and (b) the employee’s contribution at six per centum of the employee’s pensionable earnings deducted from the employee’s earnings. (2) Notwithstanding the provisions of subsection (1), the contributions in the first five years shall be deducted in accordance with the Third Schedule. Then refer to the definitions reproduced here “Tier I Contributions” means for any month, contributions in respect of Pensionable Earnings up to the Lower Earnings Limit; “Tier II Contributions” means for any month, contributions in respect of Pensionable Earnings above the Lower Earnings Limit and “pensionable earnings” means for a Pension Fund Member, the lower of the member’s monthly wages and the Upper Earnings Limit; Therefore if you earn Shs 70,000 , we assume as we do not know from the schedule III that the Upper earnings limit is your pensionable earnings (i believe this will be clarified in time) As such you contribution is 12% of 70,000/= which is Kshs8,400, then divide this into two (that is Kshs 4,200) as you contribute 6% and your employer 6%, therefore you deduct Kshs 4,200/= as your pension contribution. Tier I is computed as 12% of the lower earnings limit which is (12% x Kshs6000)= Kshs720 divide by 2 to get 360/= (which is the share from you and an equivalent from your employer). The Kshs 6000 is obtained from schedule III of the act. My reading is therefore that an employee share of Tier II in this instance is 4200 - 360 =Kshs 3,840 Even more confused now, let me just wait for my January payslip and then start from there.  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 10/29/2009 Posts: 40
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Impunity wrote:tutebeng wrote:newfarer wrote:murchr wrote:Read the bill its not hard to understand. Take time and stop being lazy I'm a polished finance person but this bill generates more heat than light.Very vague. tell me if my gross salary is say 70000 how much nssf will I pay? please quote the exact section of the act as basis of your calculations. I estimate that for you as an employee your share of pension contribution is Kshs 4,200 per month in year one subject to some details being clarified. The bill separates employer and employee contributions as such begin with sec.20(1)(a) and (b)and sec 20(2) both reproduced here 20. (1) From the commencement date and subject to the provisions of subsection (3) and section 21, an employer shall pay to the Pension Fund in respect of each employee in his or her employment- (a) the employer’s contribution at six per centum of the employee’s monthly pensionable earnings; and (b) the employee’s contribution at six per centum of the employee’s pensionable earnings deducted from the employee’s earnings. (2) Notwithstanding the provisions of subsection (1), the contributions in the first five years shall be deducted in accordance with the Third Schedule. Then refer to the definitions reproduced here “Tier I Contributions” means for any month, contributions in respect of Pensionable Earnings up to the Lower Earnings Limit; “Tier II Contributions” means for any month, contributions in respect of Pensionable Earnings above the Lower Earnings Limit and “pensionable earnings” means for a Pension Fund Member, the lower of the member’s monthly wages and the Upper Earnings Limit; Therefore if you earn Shs 70,000 , we assume as we do not know from the schedule III that the Upper earnings limit is your pensionable earnings (i believe this will be clarified in time) As such you contribution is 12% of 70,000/= which is Kshs8,400, then divide this into two (that is Kshs 4,200) as you contribute 6% and your employer 6%, therefore you deduct Kshs 4,200/= as your pension contribution. Tier I is computed as 12% of the lower earnings limit which is (12% x Kshs6000)= Kshs720 divide by 2 to get 360/= (which is the share from you and an equivalent from your employer). The Kshs 6000 is obtained from schedule III of the act. My reading is therefore that an employee share of Tier II in this instance is 4200 - 360 =Kshs 3,840 Even more confused now, let me just wait for my January payslip and then start from there. Sorry might this help Tier I Contribution (Compulsory Contribution that goes to NSSF) = (12% * 6,000) = Kshs. 720/2 =Kshs 360 Tier II Contribution (Contribution also compulsory and goes to NSSF unless one is a member of another pension scheme) = (12% * 70,000) = Kshs. 8,400/2 = kshs 4,200 =Kshs. (4,200 – 360) = Kshs. 3,840 we divide by 2 because the other half comes from the employer
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Rank: Elder Joined: 3/19/2010 Posts: 3,505 Location: Uganda
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tutebeng wrote:Impunity wrote:tutebeng wrote:newfarer wrote:murchr wrote:Read the bill its not hard to understand. Take time and stop being lazy I'm a polished finance person but this bill generates more heat than light.Very vague. tell me if my gross salary is say 70000 how much nssf will I pay? please quote the exact section of the act as basis of your calculations. I estimate that for you as an employee your share of pension contribution is Kshs 4,200 per month in year one subject to some details being clarified. The bill separates employer and employee contributions as such begin with sec.20(1)(a) and (b)and sec 20(2) both reproduced here 20. (1) From the commencement date and subject to the provisions of subsection (3) and section 21, an employer shall pay to the Pension Fund in respect of each employee in his or her employment- (a) the employer’s contribution at six per centum of the employee’s monthly pensionable earnings; and (b) the employee’s contribution at six per centum of the employee’s pensionable earnings deducted from the employee’s earnings. (2) Notwithstanding the provisions of subsection (1), the contributions in the first five years shall be deducted in accordance with the Third Schedule. Then refer to the definitions reproduced here “Tier I Contributions” means for any month, contributions in respect of Pensionable Earnings up to the Lower Earnings Limit; “Tier II Contributions” means for any month, contributions in respect of Pensionable Earnings above the Lower Earnings Limit and “pensionable earnings” means for a Pension Fund Member, the lower of the member’s monthly wages and the Upper Earnings Limit; Therefore if you earn Shs 70,000 , we assume as we do not know from the schedule III that the Upper earnings limit is your pensionable earnings (i believe this will be clarified in time) As such you contribution is 12% of 70,000/= which is Kshs8,400, then divide this into two (that is Kshs 4,200) as you contribute 6% and your employer 6%, therefore you deduct Kshs 4,200/= as your pension contribution. Tier I is computed as 12% of the lower earnings limit which is (12% x Kshs6000)= Kshs720 divide by 2 to get 360/= (which is the share from you and an equivalent from your employer). The Kshs 6000 is obtained from schedule III of the act. My reading is therefore that an employee share of Tier II in this instance is 4200 - 360 =Kshs 3,840 Even more confused now, let me just wait for my January payslip and then start from there. Sorry might this help Tier I Contribution (Compulsory Contribution that goes to NSSF) = (12% * 6,000) = Kshs. 720/2 =Kshs 360 Tier II Contribution (Contribution also compulsory and goes to NSSF unless one is a member of another pension scheme) = (12% * 70,000) = Kshs. 8,400/2 = kshs 4,200 =Kshs. (4,200 – 360) = Kshs. 3,840 we divide by 2 because the other half comes from the employer now if its this tough I doubt the mpigs knew what they were passing. I just hope that you're right and daily nation is wrong. 12% on gross is ok for me. punda amecheka
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