NSSF vs PSSSF Explained
Both NSSF and PSSSF are 20% of your salary, but they cover different people and split the contribution differently. NSSF is for private-sector and informal employees; PSSSF is for public servants. This guide explains the difference and how each affects your pay and pension.
The short answer: NSSF and PSSSF both take 20% of salary, split differently: NSSF is 10% employee plus 10% employer; PSSSF is 5% employee plus 15% employer. The employee share comes off pay before PAYE, so the split changes take-home pay.
Filed under Salary & Tax
Maintained by David M at Delta Tech Solutions · Figures last checked 19 October 2026 · Next check due 19 April 2027
Content updated 21 October 2026
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The split is the key difference
Both funds take 20% of salary, but they split it differently. NSSF's usual arrangement, and the one in the First Schedule to the NSSF Act (Cap. 50), is 10% from the employer and 10% from the employee. The split is not fixed there, though: NSSF's own rates page also permits 15% employer and 5% employee, or an employer remitting the whole 20% without deducting anything from the employee. Ask which one your employer uses, because it changes your take-home pay. PSSSF is 5% employee and 15% employer, recorded against a published payroll guide and cited to the Public Service Social Security Fund Act No. 2 of 2018, Part IV (revised as Cap. 371 R.E. 2023).
| Fund | Employee | Employer | Total | Who is covered |
|---|---|---|---|---|
| NSSF | 10% | 10% | 20% | Private-sector and informal employees |
| PSSSF | 5% | 15% | 20% | Public-service employees |
Who is covered by which fund
NSSF covers employees in the private sector and the informal sector. PSSSF covers public-service employees, including civil servants and teachers. Membership follows the sector you work in, so moving between the public and private sectors means the fund for your new post applies. What you must do at that point is set by the relevant fund's registration rules, which are the place to check.
Retirement and benefits
The compulsory retirement age is 60 under both funds, and both require at least 180 months, or 15 years, of contributions. PSSSF members may also retire voluntarily from age 55. What you receive is a different calculation for each fund, and neither one is fixed: the monthly pension depends on your contribution record, so ask your fund for the figure it holds for you rather than working from a table.
Sector matters for net pay
Your employer deducts the employee share from salary, so the split changes your take-home pay. PSSSF members contribute 5% of gross pay and NSSF members 10%, so a PSSSF member keeps more of each month's pay before tax. Under an alternative NSSF split of 15% employer and 5% employee, the employee share would be smaller, so more pay would remain in the taxable figure and the PAYE calculated on it would differ. This guide describes that direction rather than a new tax number.
Neema teaches in Morogoro and Juma teaches in Mwanza, and both earn 1,000,000 TZS a month. Neema's is a public school, so she is on PSSSF and 5% leaves her pay. Juma's is a private school on NSSF, so 10% leaves his — the same salary, a different amount reaching the tax calculation.
How the Pension Affects PAYE
The pension contribution is deducted from salary before PAYE is calculated, so the deduction reduces the pay that the tax is charged on. PAYE then leaves the first 270,000 TZS of monthly income tax-free. A larger employee share lowers taxable pay and a smaller employee share raises it, so the split affects the final tax figure as well as take-home pay.
The Employer Pays on Top of Gross
The employer's share sits on top of gross salary, so the same gross salary costs an employer different amounts in the two sectors. An NSSF employer pays 10% on top on the usual split, or 15% under the alternative. A PSSSF employer pays 15% on top. None of that employer share is deducted from the employee's pay.
Results are estimates provided for information only and do not constitute financial, legal or tax advice. Consult a qualified professional before making financial decisions.
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NSSF vs PSSSF Explained FAQs
What is the difference between NSSF and PSSSF?
NSSF covers private-sector employees (10% employee + 10% employer) and PSSSF covers public servants (5% employee + 15% employer). Both total 20% of salary.
Which fund applies to me?
Private and informal-sector employees are on NSSF; public-service employees are on PSSSF.
When can I retire?
The compulsory retirement age is 60 for both, with at least 180 months (15 years) of contributions. PSSSF members may also retire voluntarily from age 55.
Which fund pays a higher pension?
They use different pension formulas and cover different sectors, so there is no single answer. The pension depends on your contribution record and the fund's own formula; ask each fund for a statement rather than comparing the contribution rates alone.
Can I move from NSSF to PSSSF?
A move between the private and public sectors changes the fund for your new post. What happens to the old contributions depends on the funds' transfer rules, so confirm the position with both before you move.