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Gross pay for KiwiSaver and complying funds

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What
The differences between gross pay for KiwiSaver schemes and complying funds.
Who
Employers
When
Before calculating employee KiwiSaver deductions and employer KiwiSaver contributions.

Gross pay is different for KiwiSaver schemes and complying funds. The difference affects how you:

  • deduct KiwiSaver contributions from your employee’s pay
  • work out the employer contributions you need to pay.

Payments included in gross pay for KiwiSaver schemes 

For KiwiSaver schemes, gross pay is total salary or wages including:

  • bonuses
  • commission
  • extra salary 
  • gratuities
  • overtime
  • any other remuneration of any kind before tax, eg taxable benefit allowances. 

What’s not included in gross pay for KiwiSaver

You'll usually pay employer KiwiSaver contributions on the gross pay but not for any excluded salary components. These include:

  • redundancy payments
  • the value of providing board, lodging, use of a house or part of a house, or an allowance instead of accommodation
  • expenditure or allowances for accommodation and living costs overseas
  • free or discounted shares received under an employee share scheme (also known as a share purchase agreement)
  • payments under a Voluntary Bonding scheme funded by the Ministry for Primary Industries, the Ministry of Health or the Ministry of Education
  • honoraria payments paid by Fire and Emergency New Zealand to a volunteer.

Gross pay and complying funds

Gross salary or wages is different for employee KiwiSaver deductions and your contributions to complying funds. You use your employee’s gross base salary or wages to work out employee deductions and your employer contributions. This means you exclude:

  • bonuses
  • commissions
  • other amounts not included in the employee's gross base salary or wages. (These should be set out in the fund's trust deed.)

Employer contributions to KiwiSaver and complying funds

KiwiSaver deductions from employee pay