All New Zealand residents and people entitled to live here permanently up to the age of 65 are eligible for KiwiSaver. All new eligible employees must be automatically enrolled in KiwiSaver. However there are some employees who are exempt from automatic enrolment. These include:
All eligible existing employees can join the scheme at any time they wish by notifying their employer.
There are 3 employee contributions 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 1st 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 1st April 2008 and increased to 2% on 1st April 2009. The employer contributions will not increase any further in future years.
The government also:
Note: There is no Crown guarantee of KiwiSaver schemes or investment products of KiwiSaver schemes.
List of KiwiSaver Scheme Providers
For more information on KiwiSaver and how this may apply to you give us a call or refer to the KiwiSaver for Employers information available on the IRD website.