Mandatory NHIF deductions for domestic employees

Posted on December 13th, 2011
Categories: News

IMPORTANT TO KNOW..! You can organise this through places like Langata Link (branches in Langata and Muthaiga). See the NHIF website to download the application form.

You have 30 days to start remitting National Hospital Insurance Fund deductions for your house help, or risk incurring a monthly penalty equal to five times the contribution.

In a notice published on Wednesday last week, NHIF is offering a 30-day amnesty for those yet to comply with the June legal guidelines governing employment of domestic workers published by the Ministry of Labour.

The rules offered domestic workers a legal framework to demand minimum wages, employment contracts, deductions for pensions and medical care, among other work benefits.

“The notice mostly targets small employers with a workforce of less than five as they constitute the majority of employers who have not yet declared their employees,” said Mr Richard Sigei, Manager micro-insurance and sponsored programmes at the hospital fund while hinting that most of these employers are those in the domestic services category.

Hospital fund members contribute Sh320 a month.

The NHIF Act provides that employers are penalised five times the amount of monthly contribution to the fund for every non-member employee on their payroll.

The hospital fund compensates its members for healthcare costs incurred for in-patient services.

Under the NHIF Act, employers of domestic workers are required to deduct the contribution to the fund from the workers’ salaries before paying their salary.

To read the full article:’-nhif-pay.html