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Citizen Weekly

Monday, 2 February 2015

Atwoli, employers dig in over NSSF

The worker’s umbrella union and their employers want their members’ contributions to the National Social Security Fund to be retained at Sh200.
This statement by the Central Organization of Trade Unions (Cotu) and Federation of Kenya Employers (FKE) comes in the wake of an announcement last week by Deputy President William Ruto that the implementation date for the new rates will be gazetted this week.
Cotu secretary-general Francis Atwoli described the government determination to go ahead with the new rates as an act of impunity.
“This is an act of impunity which demonstrates the government’s apparent lack of interest in talking with employers and employees. We will not accept it,” he said on Sunday.
OLD NSSF RATES
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Mr Atwoli and FKE’s executive director Jacqueline Mugo declared that employers should continue to deduct Sh200 from their employers until a case in court has been heard concluded.
“FKE has advised all employers to continue remitting the old NSSF rates until the courts give a ruling on the matter,” she said in a statement.
In June last year, the Industrial Court suspended sections of the NSSF Act No. 45 that had proposed the new rates following a petition by the trade unions and employers.
The new rates required members contribute more, with both workers and their employers contributing six percent of employees’ gross salaries to the pension fund.
Ms Mugo said that by ignoring the court’s decision, the government was making it difficult for employers to exercise their right to opt out of the revised NSSF rates.