Who is eligible for KiwiSaver?
- All New Zealand residents and people up to the age of 65 entitled to live in New Zealand permanently.
Employees exempt from automatic enrolment:
- Anyone under the age of 18.
- Casual agricultural or Election Day workers.
- Private domestic workers.
- Casual and temporary employees working for 28 days or less.
Can employees opt out of KiwiSaver?
- Yes, by filing the prescribed KS10 form from the end of week 2 to the end of week 8 of their employment.
When can eligible existing employees join the scheme?
- Employees can join KiwiSaver at any time. They just need to notify their employer.
Employee contribution rates:
- 3%, 4%, 8%
- Employees elect the rate they want deducted.
- 3% rate is the default rate if the employee does not specify a rate themselves.
Compulsory Employer Contributions:
- It is compulsory for employers to contribute to their employees KiwiSaver scheme.
What is the minimum employer contribution?
- 3% is the minimum.
Employer Superannuation Contribution Tax (ESCT):
- Employers are subject to ESCT on a progressive scale based on the employees’ marginal tax rate.
Government Assistance; for self-employed or not in paid employment:
- Members 18 years and over get their annual member tax credit paid up to $521.43.
- To qualify members will need to contribute $1042.86 in the period 1 July to 30 June.
First Home Deposit:
- Funds first home deposit subsidy through Housing NZ if the relevant criteria are met.
- Kiwisaver can be used to buy your first home, if you meet the required rules.
Employers Responsibilities:
- Must provide new employees and existing staff who are interested an Employee information pack (KS3).
- Provide employees details to the IRD so that they can be enrolled.
- Make deductions from employees’ gross salary and pass these on to the IRD through the PAYE system.
For a list of providers of KiwiSaver please go to www.kiwisaver.govt.nz
For more information please call us on 09 373 4544 or visit https://www.ird.govt.nz/kiwisaver
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