Do You Need to Pay Casual Employees KiwiSaver?

Do Casual Employees Get KiwiSaver?

Casual employees can be eligible for KiwiSaver in the same way as other employees. Eligibility does not depend on whether they are casual, but on:

• Their age
• Their residency and visa status
• How long they are employed for

KiwiSaver is a voluntary savings scheme. Some employees are automatically enrolled, while others may opt in.

Automatic Enrolment for Casual and Temporary Employees

Inland Revenue’s guidance on temporary and casual employees explains when automatic enrolment applies.

• Employees aged 18–64 on a contract of more than 28 days are generally automatically enrolled, unless an exemption applies.
• Shorter-term casual or temporary employees (28 days or less) are usually not automatically enrolled, but can opt in if eligible.
• Certain casual agricultural workers have specific rules (for example, a three-month threshold).

Employer Contribution Obligations

If a casual employee is a member of KiwiSaver and making employee contributions, you will usually need to make employer contributions as well.

• Standard employer contribution rate is at least 3% of gross salary or wages
• Contributions must be on top of the employee’s pay (you cannot simply reduce their gross pay to offset your contribution)
• Contributions are paid to Inland Revenue along with PAYE and other deductions

Business.govt.nz has a straightforward guide to KiwiSaver for employers: KiwiSaver – business.govt.nz .

When You May Not Need to Contribute

There are some situations where you may not need to make employer contributions, for example if the employee is:

• Under 18 or over 65 (with some exceptions)
• On certain types of temporary visas
• Already opted out of KiwiSaver (within the opt-out period)
• Not making any employee contributions, and no contributions are required

Always check the latest Inland Revenue guidance or speak with a professional if you are unsure.

Casual Employees Who Want to Opt In

Even if a casual employee is not automatically enrolled, they may still choose to join KiwiSaver by:

• Asking you (the employer) to enrol them, or
• Joining directly through a KiwiSaver provider

Inland Revenue’s page Joining KiwiSaver as an employee explains how employees can opt in.

KiwiSaver Deductions From Casual Wages

If a casual employee is in KiwiSaver and contributions are required:

• You deduct their chosen contribution rate (3%, 4%, 6%, 8%, or 10%) from gross wages
• You add your employer contribution (at least 3%)
• You report both in your payday filing, and pay them to Inland Revenue

KiwiSaver deductions are usually calculated on the same gross earnings that you use for PAYE. Inland Revenue’s PAYE calculators can help: Calculators and tools – IRD .

Common Scenarios With Casual Employees

Short-Term Casual Work (Under 28 Days)

• Usually not automatically enrolled
• Can still opt in if eligible
• If they opt in, you generally must contribute as an employer

Ongoing Casual Work (More Than 28 Days)

• May be automatically enrolled if other criteria are met
• Employer contributions typically required if they are in KiwiSaver

Casual Worker With Multiple Jobs

• Each employer looks at their own KiwiSaver obligations
• The employee may be enrolled through one job and not another, depending on circumstances

Summary: KiwiSaver and Casual Employees

In most cases, if your casual employee is in KiwiSaver and making contributions, you will also need to contribute as an employer. The fact they are “casual” does not remove your KiwiSaver responsibilities.