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Employees with special circumstances

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What
Employee situations that mean employee KiwiSaver deductions and employer contributions can be different.
Who
Employers
When
Each time you pay salary or wages to an employee in KiwiSaver.

KiwiSaver deductions and employer contributions may change depending on your employee’s situation. 

Employees aged 60 years or over

Employees who joined KiwiSaver before 1 July 2019 must remain a member for a minimum of 5 years before they can withdraw their savings. This means your employees aged 60 years or over who joined KiwiSaver before then cannot withdraw their KiwiSaver at the same time as they become eligible for NZ Super.

For these employees you'll need to continue:

  • deducting KiwiSaver contributions from their pay (unless they’re on a savings suspension)
  • paying compulsory employer contributions.

You’ll need to do this until they’re eligible to withdraw their savings, or they retire.

Once your employee is eligible to withdraw their KiwiSaver savings you can stop your compulsory employer contributions.

An employee may continue their deductions beyond the 5 years. To stop they must give you a Non-deduction notice (KS51).

Employees on accident compensation

If you take part in the ACC partnership programme, or have an ACC employer reimbursement agreement, you continue:

  • paying an employee after an accident
  • deducting their KiwiSaver contributions from these payments.

Your employee can stop deductions from their pay with a savings suspension notice.

If your employee continues deductions, you can choose to continue making employer contributions.

When ACC pays weekly compensation to your employee, you can stop:

  • deductions from their pay
  • paying employer contributions.

Suspending KiwiSaver deductions and contributions

Employees on paid parental leave

If you continue to pay your employee while they’re receiving paid parental leave, keep deducting employee contributions and making employer contributions unless they’re on a savings suspension.

When an employee returns to work, you'll need to re-start deductions and your contributions.

Calculate KiwiSaver deductions and contributions