How KiwiSaver contributions work
There are several ways in which money can be contributed to your KiwiSaver account. Most importantly, how you contribute depends on your employment status. The various types of contributions are summarised in the following table.
| Contribution type | Employed | Self-employed | Not working | Under 18 |
|---|---|---|---|---|
| Employee contributions | Required, unless on a savings suspension | No, unless you receive PAYE income* | No | Required, if working |
| Employer contributions | Required, unless on a savings suspension | No, unless you receive PAYE income* | No | No |
| Regular payments (E.g. direct debit) | Optional | Optional | Optional | Optional |
| Lump sum payment | Optional | Optional | Optional | Optional |
| Government contributions | You may be eligible to receive up to $521.43. Find out more about the Government contribution. | No | ||
*If you are self-employed and receive PAYE income you will need to make both employee and employer contributions.
KiwiSaver contributions
The Government’s annual KiwiSaver contribution of up to $521.43
How do I receive this Government contribution?
Can I take a break from contributing?
Can I add money from my other superannuation schemes?
Your contribution
KiwiSaver helps you save for your retirement. If you’re like most KiwiSaver members, the money you contribute will come out of your salary and wages, including bonuses, commission and overtime payments.
Your KiwiSaver contributions are calculated on your gross salary and wages and deducted from your net pay. The minimum contribution is 3% of your wages, even if you are a member of another work place savings scheme.
You can choose to increase this to 4% 6%, 8% or 10%. To do this you can either submit a new contribution rate through your myIR account, or complete a KiwiSaver deduction form (KS2 form) and give this to your employer.
The rate of contribution that you have selected will continue until you notify a change to us, your employer or Inland Revenue. If you provide notice to us or Inland Revenue directly, Inland Revenue will notify your employer. Your new rate will apply to the next payment of salary or wages after your employer receives notification.
You can also make lump sum contributions at any time. It’s easy to deposit money into your Summer account online.
Your employer’s contribution
In most circumstances your employer will make a contribution to your KiwiSaver savings, usually 3% of your salary or wages.
Employers are not obliged to contribute:
- once you are eligible to withdraw,
- if you joined KiwiSaver at age 60 or over prior to 1 July 2019 and have opted out of the five year membership requirement or
- have made a life-shortening congenital condition withdrawal.
Employer contributions are subject to Employer Superannuation Contribution Tax (ESCT). You can also find out more about how to work out an employee’s ESCT rate here.
The Government’s annual KiwiSaver contribution of up to $521.43
In addition to your KiwiSaver savings and your employer contribution, the Government may also contribute to your KiwiSaver account.
Find out more about the Government contribution.
How do I receive this Government contribution?
Each July, we submit claims on our member's behalf and arrange for this to be automatically credited to their accounts. If you are concerned you have not contributed enough to access the maximum Government contribution, please get in touch and we can advise the value of your contributions for the current year.
If you’re not an employee
The Summer KiwiSaver scheme has no minimum transaction requirements, so you can adjust your contributions in line with your cash flow.
If you are either self-employed and PAYE isn't deducted, or are not currently working, you can make regular contributions or lump sums in line with your situation.
You may wish to optimise your contributions to access the Government contribution. It’s easy to deposit money into your Summer account online.
Can I take a break from contributing?
Yes – find out about taking a ‘savings suspension’
Can I add money from my other superannuation schemes?
Did you start saving for retirement before KiwiSaver was launched? Consolidating into one KiwiSaver scheme may help you to track your savings and the fees that you pay.
As long as the rules of the other superannuation scheme let you transfer to a KiwiSaver scheme, we can assist you with the process and make contact on your behalf with the other provider. Please contact us for more assistance.
