KiwiSaver KiwiSaver

How to set up an employee's KiwiSaver

1. Step01

   If the employee is not a KiwiSaver member

   Enrolment is automatic for employees aged between 18 and 65 years old, but they can opt out.

   Employees under 18 or over 65 years old can join KiwiSaver by either:

   • giving you a KiwiSaver deduction form (KS2)
   • contacting a KiwiSaver scheme provider.

   You need to enrol your new employee if:

   • they’re between 18 and 65 years old
   • they live (or normally live) in New Zealand and are a New Zealand citizen or are entitled to live here indefinitely
   • you’re not an exempt employer.

   Some employees are exempt from automatic enrolment, including contractors, secondees and casual staff.

   If you have an employer-chosen KiwiSaver scheme, you must:

   • tell new employees in writing they'll be allocated to this scheme unless they choose their own
   • give them your scheme's product disclosure statement
   • start making deductions from their first payday.

   See who's exempt from automatic enrolmentInland Revenue
2. Step02

   If the employee is already a KiwiSaver member

   Your new employee must give you either:

   • KiwiSaver deduction form (KS2) – if they don't complete the form, make deductions at the default rate of 3%
   • a letter from Inland Revenue confirming they're already on a savings holiday.

   Changing KiwiSaver contribution rateInland Revenue
3. Step03

   Enrol employees into KiwiSaver

   Give your employee a KiwiSaver information pack (KS3) within seven days.

   For most employees, this means filling in a deduction form (KS2) and giving it to you for your records. If they don't complete the form, make deductions at the default rate of 3%.

   Once enrolled, employees have eight weeks to decide if they want to stay with KiwiSaver.

   Starting employees in KiwiSaverInland Revenue
4. Step04

   Start making deductions

   Send employment information (including employer and employee contributions) to Inland Revenue for payday filing. Inland Revenue forwards the contributions to the employee’s KiwiSaver provider.

   Employee contributions 

   The employee chooses the amount you need to deduct. There are five contribution rates of their before-tax pay:

   • 3%
   • 4%
   • 6%
   • 8%
   • 10%.

   If they don't make a choice, deduct 3%.

   Employer contributions 

   You're legally required to contribute to your employees' KiwiSaver at 3% of their gross salary or wage. You can contribute more if you wish.

   The 3% must be on top of their total salary or wages, which include:

   • bonuses
   • commission
   • extra salary gratuity
   • overtime
   • most other before-tax payments.

   KiwiSaver calculations are included in Inland Revenue’s PAYE calculator to help make it easier. You can also work this out in the PAYE deduction tables.

   Employer contributions are liable for employer superannuation contribution tax (ESCT).

   Learn how to make deductionsInland Revenue
5. Step05

   Make necessary changes

   Once an employee is in KiwiSaver, you must keep making deductions, unless:

   • Inland Revenue tells you the employee is taking a savings suspension, or your employee gives you a savings suspension confirmation letter from Inland Revenue
   • Inland Revenue tells you to stop making deductions for an employee
   • the employee turns 65 and decides to stop their KiwiSaver deductions from their pay – they must give you a non-deduction notice (KS51).

   Inland Revenue can also ask you to start making deductions from an employee's pay either:

   • if the employee joins a scheme directly
   • when their savings suspension expires.

   Employees can change between the five contribution rates by telling you their new contribution rate. They can't change it more often than every three months, unless you both agree to do so.

   Download a non-deduction noticeInland Revenue
6. Step06

   If the employee wants to opt out

   Employees have eight weeks from enrolment to decide if they want to opt out from KiwiSaver.

   Request to opt outInland Revenue