COTU supports 6% increment in NSSF deductions, Atwoli says

The Central Organization of Trade Unions (COTU) through Secretary General Francis Atwoli says it fully supports the increment of the National Social Security Fund (NSSF) deductions from the current KES 200 to the 6% rate of an employee’s monthly salary.

According to Atwoli, the increment has been long overdue stating that the current deductions “are critically inadequate”.

“…in coming up with a worker-friendly NSSF Act, COTU (K) must champion and advocate for the expansion of social protection and or retirement benefits, first, horizontally to increase the coverage to include the jua kali sector (informal sector) and second, vertically increase the rate to realise adequacy for retirement benefits…” read part of their statement.

Atwoli defended the Unions’ decision saying that the current amount deducted exposes retirees to old-age poverty further calling on Kenyans to embrace the new rates.

“A worker earning 50,000 a month and having worked for 30 years being deducted 6% with an equal top-up from the employer will take home KES 2.1 million (subject to inflation) upon retirement,” he said.

On the case against NSSF, Atwoli clarified that COTU does not have any active case against the government agency referencing an old case for context.

“…in 2014 [COTU] filed a case seeking an order to suspend the implementation of the NSSF Act of 2013 for reasons that, first, workers, through COTU (K) were not represented in the NSSF board and, second, the NSSF did not have a substantive Managing trustee who would have overseen the implementation of the act.

COTU withdrew the case in October 2020 after the two issues stated above were resolved.

 

 

 

 

 

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