Employer KiwiSaver Contribution

When you are enrolled in KiwiSaver, your employer is required to contribute a minimum of 3% of your gross earnings to your KiwiSaver account. This is on top of your own employee contributions. Some employers choose to contribute more than the minimum.

Employer contributions are subject to Employer Superannuation Contribution Tax (ESCT), which is deducted before the money reaches your KiwiSaver account. The ESCT rate depends on your income and ranges from 10.5% to 39%, matching the income tax brackets.

Employer contributions are essentially additional remuneration that goes directly into your retirement savings. Over a full working career, they can add hundreds of thousands of dollars to your KiwiSaver balance, making them one of the most valuable benefits of being in the scheme.

On a $70,000 salary, the minimum 3% employer contribution is $2,100 per year before ESCT. After tax, approximately $1,400 to $1,800 reaches your account annually. Over 35 years of work with compound growth, this alone could build $100,000 or more in additional retirement savings.

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