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.
(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.
This section includes the legislative changes made in December 2008.