If you’re a KiwiSaver member and you contribute from your pay, your employer must also contribute.
How much your employer must contribute to KiwiSaver
Your employer must contribute at least 3% of your gross earnings on top of your regular pay unless:
- they’re already paying into another eligible scheme for you
- you're under 18 or over the age of eligibility
- you're not currently contributing from your pay.
Your employer must deduct tax (employer superannuation contribution tax) from their contributions. The amount paid to your KiwiSaver scheme by your employer may be less than 3%.
You may not qualify for compulsory KiwiSaver contributions
Your employer does not have to contribute to your KiwiSaver if you’re:
- under 18 over 65 and have been in KiwiSaver for more than 5 years
- not making contributions.
Voluntary employer contributions to your KiwiSaver
Your employer may choose to make voluntary contributions to your KiwiSaver account above 3%. This includes making voluntary payments if they are not required to make compulsory contributions.
Wage bargaining and KiwiSaver
Your employer's compulsory contributions must be on top of your regular pay. If you agreed to a total remuneration package, your employer must pay contributions on top of the package. You should not take home less in your pay because your employer is making a compulsory contribution. Sometimes, a salary package under an employment agreement can be negotiated so compulsory employer contributions can be offset against your gross pay. Your take-home pay will reduce under this agreement.
Exempt employers and KiwiSaver
If your employer already offers a registered superannuation scheme, they may not have to automatically enrol you in KiwiSaver.
They must still make:
- KiwiSaver available to you if you want to join
- deductions for new employees already in KiwiSaver
- employer contributions for employees who are KiwiSaver members.