Employer Contributions

 

Employer Contributions

From 1 April 2008, all employees who have attained age 18 contributing to KiwiSaver (and complying superannuation funds) are entitled to a matching employer contribution subject to any offsets for employer contributions to other superannuation arrangements that may be available.  The compulsory contribution is not scaled to increase in future years and is as follows:

From:

Minimum employee contribution

(% of total taxable earnings)

Employer contribution


(% of total taxable earnings)

Total employee & employer contributions

(% of total taxable earnings)

1 April 2009*

2

2

4

1 April 2010

2

2

4

1 April 2011

2

2

4

1 April 2013

3

3

6

* Prior to 1 April 2009, the minimum employee contribution was 4% (although this could have included a voluntary employer contribution element).  It became optional to reduce to 2% from this date.

** Subject to a National Party led Government remaining in power after the 2011 election, and the passing of the appropriate changes to the KiwiSaver Act 2006.   Employer contributions will become liable for ESCT from 1 April 2012.

Subsidies for Employers 

  • All employer contributions to a KiwiSaver scheme or complying superannuation fund were eligible for a matching employer tax credit of up to $20 per week per employee from 1 April 2008, payable to the employer. This matching tax credit ceased effective 1 April 2009.
  • Employer tax credits were paid to employers through the PAYE system by offsetting the credit against the employer's contribution and other PAYE liabilities to minimise cashflow impacts and compliance costs. The employer tax credit ceased from 1 April 2009.

Employer contributions to alternative schemes that are not complying funds will count towards the compulsory employer matching contributions where these contributions matched those of an employee.   Employers were not, however, eligible for the employer tax credit on these contributions when the employer tax credit regime was in effect.