How much does my employer need to contribute my KiwiSaver account?

Your employer needs to contribute at least 3% towards your KiwiSaver account if you’re a KiwiSaver member making contributions from your pay.

Compulsory employer contributions

If you're a KiwiSaver member making contributions from your pay, your employer also has to put money in. This is equal to 3% of your pay.

Your employer does not have to make compulsory employer contributions to your KiwiSaver scheme if:

  • they are already paying into another eligible registered superannuation scheme for you (if your existing scheme meets certain criteria)
  • you are under 18 years of age
  • you are over 65 years of age (and you have been a member for more than 5 years)
  • you are not contributing (for example, on a savings suspension or on leave without pay).

Voluntary employer contributions

Your employer may choose to make voluntary contributions to your KiwiSaver account. Voluntary employer contributions include any contributions over and above the compulsory employer contribution rate to employees:

  • aged under 18 or over 65 years (and who have been a member for more than 5 years)
  • on a savings suspension, or
  • who are on leave without pay.

Wage bargaining

Your employer's compulsory contributions must be on top of your regular pay. This means that if you have agreed to a total remuneration package, the compulsory employer contributions must be paid on top of that package. Your take-home pay should not be reduced because your employer is making a compulsory contribution.

Through good faith bargaining, a salary package under an employment agreement can be negotiated whereby compulsory employer contributions can be offset against the employee's gross pay.

Inland Revenue can only send your employer's compulsory contributions to your KiwiSaver provider if they've received the money from your employer.

'Exempt' employers

If your employer already offers a registered superannuation scheme they may have an exemption from the Financial Markets Authority.

The exemption means that your employer doesn't have to automatically enrol new employees in KiwiSaver, but they still have to make:

  • KiwiSaver available to any staff who want to join
  • deductions for any new employees who are KiwiSaver members
  • employer contributions for employees who are KiwiSaver members.