Employee minimum contributions to KiwiSaver
The minimum KiwiSaver contribution rate for employees is 3%. The 3% has applied since 1 April 2013.
Employer minimum contributions to KiwiSaver
The minimum employer contribution for employees who qualify and who are contributing through payroll deduction, is 3%. Remember this is a gross of tax contribution.
Some other facts to remember about the employer contribution:
- An employer must subsidise an employee’s savings if the employee is 18 or older and under their KiwiSaver retirement age (currently age 65, subject to a minimum of 5 years’ membership if later).
- An employer can voluntarily contribute at a higher level.
- If an employee has not completed five years’ membership in KiwiSaver by age 65 and chooses to continue saving, the employer’s contributions must also continue.
- All employer contributions are subject to ESCT and only the net contribution goes to KiwiSaver. Details on how to calculate an employee’s ESCT rate are here.
Taking a contribution holiday from KiwiSaver
If an employee has been in KiwiSaver for more than 12 months they can request a contributions holiday by completing Inland Revenue’s contributions holiday request form (KS6). If the employee goes on a contributions holiday and is not contributing, the employer is not required to contribute.
Employees on a contributions holiday can still make voluntary contributions (outside of the PAYE system) to their KiwiSaver Account. They can make lump sum contributions, or set up a regular direct debit. They may wish to contribute up to $1,042.86 per year to KiwiSaver to be eligible for the MTC (member tax credit) up to the maximum payable of $521.43 per year.
Get more information
More information on KiwiSaver is available at www.SuperLife.co.nz, or by emailing SuperLife SuperLife@SuperLife.co.nz, or calling SuperLife at 0800 27 87 37.
