Employers anxious over new pension scheme
Nairobi,Kenya:The Federation of Kenya Employers (FKE) has raised the red flag over omissions in the recently published rules and regulations, meant to operationalise the National Social Security Fund (NSSF) Act. Upon commencement, the Act will give workers an increase of 6 per cent on the employers’ contribution, which was not negotiated. This affects all enterprises with negotiated collective bargain agreements, which contain clauses on gratuity. Gratuity is a lump sum amount that an employer pays the employee when he retires or resigns from the organisation. “The gratuity clause needs to be ring fenced and made applicable only for the period prior to the increased NSSF rates,” said FKE Chief Executive Officer, Jacqueline Mugo.
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