How much does my employer contribute to KiwiSaver and is the minimum 3%?
Yes, your employer is required to contribute a minimum of 3% of your gross salary or wages to your KiwiSaver account. This is on top of your own employee contributions.
Key details about employer contributions:
- The minimum employer contribution rate is 3% of your before-tax pay
- Employers may choose to contribute more than the minimum, but they are not required to
- Employer contributions are subject to Employer Superannuation Contribution Tax (ESCT), which is deducted before the contribution is paid into your account
ESCT rates for the 2025 tax year:
| Combined salary + employer contribution | ESCT Rate |
|---|---|
| Up to NZ$16,800 | 10.5% |
| NZ$16,801 to NZ$57,600 | 17.5% |
| NZ$57,601 to NZ$84,000 | 30% |
| NZ$84,001 to NZ$216,000 | 33% |
| Over NZ$216,000 | 39% |
Example: If you earn NZ$60,000 per year, your employer contributes at least NZ$1,800 (3%). After ESCT is deducted at 30%, approximately NZ$1,260 reaches your KiwiSaver account.
Important changes ahead: From 1 April 2026, the minimum employer contribution rate will increase to 3.5%, and from 1 April 2028 it will rise to 4%. Employers can opt to absorb these increases or pass them through.
Who is eligible: You must be aged 18 or over (changing to 16 from April 2026), employed in New Zealand, and a KiwiSaver member to receive compulsory employer contributions.
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