Kiwisaver

Fast Facts

All New Zealand residents and people entitled to live here permanently up to the age of 65 are eligible for KiwiSaver.  However there are some employees who are exempt from automatic enrolment.  These include:

• Those under 18 years of age
• Casual agricultural works or Election Day workers
• Private domestic workers
• Casual and temporary employees employed under a contract of service that is 28 days or less.

All eligible existing employees can join the scheme at any time they wish by notifying their employer.

There are three employee contribution rates, being 2%, 4% or 8%.  The employee can elect the rate at which they want their contributions deducted.  If an employee does not elect a rate then the default rate of 2% will be used by the employer for contribution deductions made.

Compulsory Employer Contributions:

From 1 April 2008 it became compulsory for employers to contribute to their employees' KiwiSaver scheme.

This compulsory contribution started at 1% of employees gross salary or wages on 1 April 2008 and increased to 2% on 1 April 2009. The employer contributions will then not increase any further in future years. 

Government Assistance 

The government also

• Contributes $1,000 (tax free) when a member first joins.
• Pays annual member tax credit (for those 18 and over) of up to $1,042.86.
• Funds first home deposit subsidy through Housing NZ if criteria met.

Note: There is no Crown guarantee of KiwiSaver schemes or investment products of KiwiSaver schemes.

List of KiwiSaver Scheme Providers

Employers must:

• Give new employees and other staff who are interested an Employee information pack (KS3).
• Pass employee’s details to Inland Revenue to enable them to be enrolled.
• Deduct contributions from employee’s gross salary and pay these to IRD through the PAYE system

Wood Walton has more information to assist you so please Contact us for more details on the Employer’s role.