Tier 1 contributions are monthly contributions in respect of Pensionable Earnings up to the Lower Earnings Limit, that are done directly to NSSF.
What is Enwealth Umbrella Fund
Enwealth Umbrella Retirement Benefits Scheme is an umbrella pension scheme designed
for Employers who wish to ride on an already existing retirement fund.
The scheme is approved by RBA to receive NSSF Tier II Contributions with a wide range
of benefits to both employers and employees. The enactment of the NSSF Act 2013 sought to revise the monthly contributions by both
employer and employee from KES 400 to a 12% deduction operated in the Tier 1 and
Tier II system. The law is now effective since 2023, after several litigations and
suspension by the court in 2014.
Join In 3 Easy Steps
Frequently Asked Questions
What are Tier II contributions?
Tier 2 contributions are contributions that are over and above the normal contributions that are done to NSSF. This is how much money that can go into your existing pension fund.
What is Lower Earnings Limit?
This is the amount gazetted by the Cabinet Secretary from time to time as the average statutory minimum monthly basic wage for the top urban centres, second tier urban centres and rural areas for the year.
How much will Tier II contributions cost?
Tier 2 contributions are the bulk of your statutory contribution. It costs 6 % of your salary and is phased over a 5-year period.
How are Tier II contributions calculated?
Tier 2 contributions are based on your earnings between lower earnings limit and upper earnings limit.
The below table provides such a summary.
What is the deadline for making monthly Tier II contributions?
The deadline for making contributions is the 10th day of every month.
Is there a penalty for delayed contribution?
Yes, there is a penalty for delayed contribution. If you delay your contribution you will be denied the opportunity to get better benefits.
What is a contracted-out scheme?
It is an occupational retirement benefits scheme including an umbrella retirement benefits scheme or an individual retirement benefit scheme which has been approved and registered by the Retirement Benefits Authority for purposes of receiving Tier II Contributions and, where applicable, Tier II Fund Credit transfers.