KiwiSaver for Employers - Complete Guide

What is KiwiSaver?

KiwiSaver is New Zealand's voluntary retirement savings scheme. While it's voluntary for employees, employers have mandatory obligations:

• Auto-enrol eligible new employees
• Deduct employee contributions from wages
• Contribute 3% of gross wages yourself
• Pay all contributions to IRD monthly

Auto-Enrolment Rules

Who Must Be Auto-Enrolled

You must auto-enrol employees who are:

• Aged 18 to 65 years old
• New Zealand citizens or entitled to live in NZ permanently
• Not already KiwiSaver members
• Starting a new job (even if casual)

Who is Exempt

You don't need to auto-enrol employees who are:

• Under 18 years old
• 65 years or older (unless they specifically request to join)
• On a temporary work visa
• Already KiwiSaver members at another job
• Have previously opted out of KiwiSaver

KiwiSaver Contribution Rates

Employee Contributions

Employees can choose their contribution rate:

• 3% of gross wages (minimum, default)
• 4% of gross wages
• 6% of gross wages
• 8% of gross wages
• 10% of gross wages

Employer Contributions

As an employer, you must contribute:

• 3% of employee's gross wages (minimum required by law)
• You can choose to contribute more than 3% voluntarily
• Applies to all KiwiSaver members regardless of their contribution rate

Example Calculation

Scenario: Employee earns $1,000 gross and contributes 3%

• Employee contribution: $1,000 × 3% = $30 (deducted from wages)
• Employer contribution: $1,000 × 3% = $30 (your cost)
• Total to IRD: $60
• Employee receives: $1,000 - $30 (minus PAYE and ACC)

Opt-Out Period (2-8 Weeks)

Employees can opt out of KiwiSaver, but only within a specific timeframe:

Opt-Out Window

• Starts: Between 14-28 days after auto-enrolment
• Ends: 8 weeks after auto-enrolment
• How: Employee completes a KS10 Opt-Out form
• Result: They get a refund of all contributions made

What Happens If They Opt Out

• Stop deducting employee contributions
• Stop making employer contributions
• IRD refunds all deductions made during the 8-week period
• Employee cannot rejoin KiwiSaver at this job (unless job changes)

If They Miss the Opt-Out Window

After 8 weeks, employees cannot opt out. They can only:

• Take a contributions holiday (savings suspension)
• Reduce their contribution rate to the minimum (3%)
• Continue contributing until they change jobs

Your KiwiSaver Obligations Timeline

Day 1: Employee Starts Work

• Auto-enrol if they're eligible (age 18-65, not exempt)
• Start deducting employee contributions (3% default)
• Start calculating your 3% employer contribution

Within 7 Days

• Send a KS2 KiwiSaver Employer Enrolment form to IRD
• Can be done through myIR online
• Provides employee's details to IRD

First Payday

• Deduct employee contribution from gross wages
• Show deduction clearly on payslip
• Calculate your 3% employer contribution (not deducted from wages)

By 20th of Each Month

• Pay total KiwiSaver contributions to IRD
• Include in your Employer Monthly Schedule
• Pay employee + employer contributions together

Common KiwiSaver Scenarios

Scenario 1: Employee Already Has KiwiSaver

If an employee is already a KiwiSaver member:

• You still make 3% employer contributions
• Deduct their chosen contribution rate
• File a KS2 form with IRD within 7 days

Scenario 2: Employee Under 18

• Not auto-enrolled
• Can join voluntarily
• If they join, you must make 3% employer contributions

Scenario 3: Employee on Work Visa

• Temporary visa holders are not auto-enrolled
• Permanent residents are auto-enrolled
• Check visa status carefully

Scenario 4: Casual Employee with Multiple Jobs

• If they're already a KiwiSaver member from another job, they continue
• You must still contribute 3% as their employer
• They pay contributions from both jobs

Official KiwiSaver Resources

• IRD KiwiSaver for Employers - Complete guide
• KS2 Form - Employer enrolment form
• KiwiSaver.govt.nz - Official employer information
• Employer Contribution Guide - Detailed calculations