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KiwiSaver Contribution Rates

Summary
  • From 1st April 2013 the minimum employee and employer KiwiSaver Contribution Rates are both 3%.
  • An employee can choose whether to contribute 3%, 4% or 8%.
  • An employee does this by giving their employer a KS2 Employee Deductions form.
  • Even if an employee is a KiwiSaver member, no KiwiSaver deductions are required if no PAYE is deducted. Section 62
How To Access
  • All KiwiSaver related employee maintenance is performed from the F3 Employee Maintenance screen.
  • Note the KiwiSaver tab.
  • Also remember this screen can be accessed whilst calculating pays, thus allowing changes to be made "on the fly".
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  • To change an employee's contribution rate, simply click their current contribution rate as shown below, then select the required value.
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Section 62 KiwiSaver Act 2006
When subpart does not apply

This subpart does not apply to an employer in respect of an employee, or to a payment of salary or wages,

(a) if section 20(2) has required the employer to stop making deductions after an opt-out; or

(b) if the employee has given or shown the employer a notice of a contributions holiday, or the Commissioner has notified the employer of a contributions holiday, that has been granted under subpart 4, for so long as the employer is satisfied that the employee is on that contributions holiday; or

(c) if, in accordance with the PAYE rules, no tax deduction is required to be made from the payment of salary or wages at the time the payment is made.

Section 64 KiwiSaver Act 2006
Contribution rate

(1) The contribution rate, in relation to an employee and to an employer and to each payment of salary or wages, is

(a) 3% of the employee's gross salary or wages, if

(i) section 60(1)(a), (b) or (c) first applied in respect of the employee on or after 1 April 2009 and the employee has not given his or her employer a notice under subsection (2); or

(ii) section 66A applied in respect of the employee immediately before 1 April 2009; or

(ab) 4% of the employee's gross salary or wages, if section 60(1)(a), (b) or (c) first applied in respect of the employee before 1 April 2009 and the employee has not given his or her employer a notice under paragraph (b); or

(b) 8% of the employee's gross salary or wages if the employee gives his or her employer a notice requiring contributions to be deducted at that rate.

(2) Despite subsection (1), the employee may change their contribution rate from their current contribution rate described in subsection (1) to another rate in that subsection (new rate) by giving notice to their employer of the new rate.

(3) The new rate applies to the next payment of salary or wages that is calculated after the employer receives that notice.

(4) An employee may not change his or her contribution rate in relation to an employer at intervals that are less than 3 months apart unless the employer agrees.

Editors Note:
This section includes the legislative changes made in December 2008.

More KiwiSaver Information

KiwiSaver Overview
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KiwiSaver Employee Setup
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KiwiSaver Pay Calculation
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KiwiSaver Automatic Enrolment
Every person that starts a new job is automatically enrolled in the scheme more..
KiwiSaver Exempt Employees
Under 18, over 65, and casual employees are exempted from automatic enrolment more..
KiwiSaver Contribution Rates
All members must contribute 3% of gross wages and may contribute 4% or 8% more..
KiwiSaver Opting Out
An employee has 8 weeks from the start of employment to opt out of the scheme more..
KiwiSaver Opting In
Anyone can opt in to the scheme at any time. Once opted in, an employee can never opt out more..
KiwiSaver Contributions Holiday
All applications for a contributions holiday must be made to the IRD using a KS6 Contributions Holiday request form more..
KiwiSaver Employer Contributions
All employers must contribute 3% for each employee enrolled in KiwiSaver more..
ESCT - What Is It?
A description of Employers Superannuation Contributions Tax and how it is paid more..
ESCT Calculation
ESCT is payable on all KiwiSaver employer contributions more..
ESCT Tax Rates
Employer KiwiSaver contributions are taxed at the top employee marginal tax rate, based on estimated annual earnings more..
ESCT on IRD Monthly Returns
I am doing my monthly return for IRD and the ESCT figure does not show on my IR348 return. What is wrong? more..
KiwiSaver Contributions Report
The KiwiSaver Contributions Report keeps track of contributions, reversals and refunds more..
KiwiSaver Reversals and Refunds
Use the Reversals and Refunds Wizard to reverse and optionally refund KiwiSaver deductions to employees that were automatically enrolled, and then opted out of KiwiSaver more..
KiwiSaver Company Setup
For most employers no company setup is required in Ace Payroll more..
Total Remuneration
Use when an agreed salary package includes KiwiSaver employer contributions more..
KiwiSaver Scheme Providers
The linking of employees to scheme providers does not happen at the payroll end of the process more..
Exempt Schemes
How to disable the deduction of compulsory employer KiwiSaver contributions for employees in exempt KiwiSaver schemes more..
Alphabetical Index
The Ace Payroll alphabetical index provides links to all documentation more..
Ace Payroll FAQ Contents
All the most common Ace Payroll questions grouped by categories in a short table of key words more..
Ace Payroll Frequently Asked Questions
All the most common questions we are asked at Ace Payroll listed in a question format and grouped by category more..

KiwiSaver Forms

image KS1 Employee Details
An employer uses this form to notify Inland Revenue about
  • a new employee being enrolled automatically.
  • an existing employee opting in.
image KS2 KiwiSaver Deductions
An employee uses this form to provide details to an employer if they are
  • starting new employment.
  • an existing employee opting in.
  • a member contribution rate change.
image KS3 Employee Information
An introductory guide for an employee about the KiwiSaver scheme.
KS4 KiwiSaver Employer Guide
A 36 page overview of your KiwiSaver responsibilities as an employer.
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KS6 Contributions Holiday
An employee uses this form to request a contributions holiday.
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image KS10 New Employee Opt Out
An employee uses this form if they have been automatically enrolled and don't want to be a member of KiwiSaver.