Before agreeing to the proposed increase in NSSF deductions, members of the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals, and Allied Workers (KUDHEIHA) issued a list of requests to President William Ruto.
The 6% contribution rate, according to Secretary General Albert Njeru, is too much for their workers.Therefore, he pushed for an increase in their monthly compensation from the current minimum wage of Ksh15,200 to Ksh30,000.
Njeru argued that if the deductions were implemented straight now, employees would be exposed and vulnerable.He also asked the staff for assurances that the fund will be adequately managed to handle the larger donations.
Njeru stated that in order to prevent future double taxation, KUDHEIHA staff needed guarantees from the Head of State that Pay as You Earn (PAYE) would not be deducted from their contributions.
According to President Ruto's proposal, NSSF donations will be made on behalf of both employed and unemployed people.
He claims that a Ksh200 monthly gift is insufficient to support someone as they age. As a result, he attempted to increase it to Ksh 2,000.
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