- 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
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 employees’ KiwiSaver scheme.
This compulsory contribution is 3% of employees’ gross salary or wages.
From 1 April 2012 all employer contributions will be subject to Employer Superannuation Contribution Tax (ESCT) at 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
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 enrolled
- Deduct contributions from employees’ gross salary and pay these to IRD through the PAYE system
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.