Tax Facts - KiwiSaver
All New Zealand residents and people entitled to live here
permanently up to the age of 65 are eligible for KiwiSaver.
All new eligible employees must be automatically enrolled in
KiwiSaver. However there are some employees who are exempt
from automatic enrolment. These include:
- Those under 18 years of age
- Casual agricultural workers or Election Day workers
- Private domestic workers
- Casual and temporary employees employed under a contract of
service that is 28 days or less
Employees who are automatically enrolled can opt out but must do
so within a specified time (from the end of week 2 of their
employment to the end of week 8) by filing the prescribed from (KS10).
All eligible existing employees can join the scheme at any time
they wish by notifying their employer.
There are 3 employee contributions rates, being 3%, 4% or
8%. The employee can elect the rate at which they want their
contributions deducted. If an employee does not elect a rate
then the default rate of 3% will be used by the employer for
contribution deductions made.
Compulsory Employer Contributions
From 1 April 2008 it became compulsory for employers to
contribute to their eligible employees' KiwiSaver scheme unless the
employer is already paying into another registered superannuation
scheme for the employee.
This minimum compulsory contribution rose to 3% from 1 April
Employer contributions are subject to Employer Superannuation
Contribution Tax (ESCT) on a progressive scale based on the
employees' marginal tax rate.
The government also:
- Pays annual member tax credit (for those 18 and over) of up to
$521.43 (effective from 1 July 2011)
- Funds first home deposit subsidy through Housing NZ if the
relevant criteria are met
Prior to 21 May 2015, the government made a $1,000 'kick-start'
Note: There is no Crown guarantee of KiwiSaver schemes or
investment products of KiwiSaver schemes.
- Give new employees and other existing staff who are interested
an Employee information pack (KS3)
- Pass employees' details to Inland Revenue to enable them to be
- Deduct contributions from employees' gross salary and pay these
to IRD through the PAYE system
A list of KiwiSaver providers is available at www.kiwisaver.govt.nz
For more information on KiwiSaver and how this may apply to you
give us a call or refer to the KiwiSaver for Employers information available
on the IRD website.
Return to list of