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KiwiSaver penalties

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What
How to avoid penalties and fees if you don't comply to KiwiSaver regulations.
Who
Anyone who is penalised.

We'll work with you to help you meet your KiwiSaver obligations.

When something does go wrong, for example you do not deduct KiwiSaver contributions for an employee, we'll send you a reminder. This will be followed by a notice to warn you that we may charge you a penalty if you do not meet your obligations in the future.

What KiwiSaver penalties are for

You may be given a KiwiSaver penalty for:

  • not providing information KiwiSaver information to your employees or to us
  • not making the correct KiwiSaver deduction when required to do so
  • not enrolling a new employee eligible for automatic enrolment (unless you're an exempt employer)
  • not making compulsory employer contributions.

The penalties are either:

  • $50 per month if you're a small employer
  • $250 per month if you're a large employer.

When we waive a penalty

We do not penalise you if:

  • your employee chose not to give you information or gave you the wrong information
  • you could not give your employee their Your introduction to KiwiSaver - employee information factsheet - KS3 because we had not supplied them to you (you need to notify us that further copies are required as soon as possible).

In addition to KiwiSaver penalties, there are standard tax penalties and knowledge offences when either a KiwiSaver employee deduction or compulsory employer contribution is not paid to us or is paid late. This is the same as PAYE deductions where you are subject to late payment penalties, late filing penalties and use of money interest.

Penalties and debt