By Luke Anami
Your contributions to the National Social Security Fund will rise if a Bill set to transform the Fund from a provident Fund to a pension fund sails through Parliament.
Under the Transformation Bill 2012, workers and employers will contribute six per cent of their basic pay to the fund, instead of the mandatory Sh200 that workers and employers contribute.
While presiding over the first AGM for NSSF, Finance Minister Robinson Githae received his statement, which indicated, for 15 years worked, he is entitled to a paltry Sh71,347.
“This is peanuts compared to what I would have earned as pension after working for 15 years,” Githae said. “We will support the Bill once it is in Parliament because saving for future is the way to go.”
“The mandatory pay, which translates to Sh400, does not take care of inflation and therefore a worker cannot take home more than Sh100,000 even if he worked for 30 years. A percentage of a basic pay is far better as it will be calculated by how much is your monthly pay,” Mohamed Adan, chairman of NSSF said in an interview with The Standard.
“The minimum deductions will be determined by the current minimum wage of Sh9,000.”
Workers will save more as well as access their statements under the proposed National Social Security Fund.
Meanwhile, Central Organisation of Trade Unions ( Cotu) Secretary General Francis Atwoli said workers would not oppose the proposals because stakeholders were consulted.
“Unlike NHIF where the minister wants to bulldoze things, stakeholders of NSSF are in agreement those contributions should be increased,” Atwoli said.