Africa HR Solutions, providing cost-effective, high quality and full outsourced payroll services is proactively involved in the African Tax Compliance industry, having the privilege to connect its multiple perspectives and possibilities across the African Market.
Kenya: National Social Security Fund Act assigned to law
Following the presidential ascent in Kenya, the National Social Security Fund (NSSF) Act 2013 got implemented in January 10, 2014.
Referring to the previous NSSF Act where employees were requested to pay flat rates contributions of (US$2.30), a new provident fund has been set in place, establishing two new funds: a pension fund and a new provident fund where commitments and contributions are compulsory for all employees aged between 18 and 60 years old. In fact, an employer who earns a contribution rate of 6% within a salary basis of a minimum wage or of a National Average Earning is the same as well as for an employee.
Compensations are for instance separated into two categories: Minimum wages and National Average Earnings. Lower is the earnings limit, the minimum statutory and monthly basic wage one pays. Compared to the National Average Earnings which depends on the amount above the lower earnings limit.
Employers have the choice to pull back a national average earning by offering an approved retirement benefit plan equal to those who provide contributions under the NSSF. It is recommended that employers keep broad records employees and of the employers who are paid via the pensions. The plan’s benefits including retirement, disability pensions, survivor benefits and funeral grants shall be payable from the normal retirement age of 60 years, with a possibility to retire at the age of 50 thus, having the option of embracing a third of the National Average Earnings balance as lump sum.
Expatriates working in Kenya for less than 3 years are excluded from this system, covered by an equivalent program from their local countries. Expatriates covered by a social security arrangement could be exempted under this special accord.
Africa HR Solutions and In-Country partners ensure its clients adhere to the following:
• All administration procedures are respected as pursuant to the legislation because reporting is an integral part of our process.
• All our clients are provided with a high quality and accurate monthly payroll
• We clearly communicate all changes in social security plans as per required for employees.
• We focus on flexibility and accuracy by working with organizations requiring In-country payrolls on the African continent.
• We ensure that all details of employees are correctly recorded for new payroll processes
• Companies with present occupational pension plans should also review their existing retirement benefit arrangements.
• We offer a peace of mind that the In-country payroll will be fully compliant along with specific rules and regulations of the country assigned.
• Advise on processes and procedures to ensure accurate source documentation.
Either you belong to the mine, oil & gas, banking & finance, construction, forestry, engineering, IT & Telecom, NGOS sectors, we’ll provide you the best services suiting you and your company.
We provide our services in more than 50 countries throughout the African Continent:
Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde Islands, Central African Republic, Chad, Comoros, Congo, Cote d’Ivoire , Djibouti, Egypt, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea , Guinea Bissau , Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi , Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome’ and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, Democratic Republic of Congo, Zambia, Zimbabwe.
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