Atwoli orders workers to ignore employer warnings on enhanced NSSF deductions

The Central Organisation of Trade Unions (COTU) has instructed workers to comply fully with the enhanced National Social Security Fund (NSSF) deductions.

COTU General Secretary Francis Atwoli issued a statement defending the revised rates, which represent the fourth phase of the NSSF Act of 2013.

The union chief criticized the Federation of Kenya Employers (FKE), accusing the body of spreading selective and alarmist narratives regarding worker payslips.

The employers' federation recently raised concerns over the shrunk disposable income of Kenyan employees following the implementation of the new rates.

FKE suggested that the increased statutory deductions would heavily burden employees who are already dealing with a high cost of living.

Atwoli countered this view, stating that the statutory contributions are not an attack on livelihoods, but a necessary step to secure retirement benefits.

The trade union leader reminded employers that compliance with the updated legal framework is mandatory, not negotiable.

According to Atwoli, the core responsibility of an employer includes ensuring that workers can retire with dignity and financial peace of mind.

The union accused FKE of hypocrisy, claiming the employers' group historically delayed minimum wage increases by raising endless objections.

The updated NSSF structure raised the lower earnings threshold for contributions to 9,000 Kenyan Shillings (Ksh) from Ksh 8,000, while the upper limit increased to Ksh 108,000 from Ksh 72,000.

These adjustments mean both employees and employers must remit higher amounts to the national pension fund.

Unions argue the adjustments are necessary to move away from the low benefits associated with the previous flat-rate model, which left retirees vulnerable.

FKE subsequently defended its commitment to building pension savings, but urged structured tripartite engagement to protect disposable income and business sustainability.

Atwoli maintained that wages, social security, and worker welfare remain the exclusive mandate of trade unions, telling employers to stay in their lane.

The COTU leadership urged workers to recognize long-term social protection as a fundamental right, rather than focusing solely on immediate take-home pay.