Contributing to KiwiSaver

Making contributions to KiwiSaver is quite easy, especially for those who are employed.

When you are employed, your employer deducts contributions directly from your pay and sends them to Inland Revenue. Employees can choose to contribute either 3 per cent, 4 per cent or 8 per cent of their before-tax pay.  For those who don’t choose an amount, the default rate of 3 per cent will apply.

KiwiSaver contributions are deducted from a person’s salary or wages. This includes allowances; bonuses; commission; extra salary; overtime; gratuities and any other remuneration of any kind before tax.

Those who are unemployed can generally make contributions directly to their KiwiSaver provider. The contribution rate will be set out in the contract they have with their KiwiSaver provider. There may be a minimum annual sum or specific payment periods that apply, such as monthly or quarterly.

Individuals can also make voluntary contributions (or lump sum payments) at any time, either directly to their KiwiSaver provider or through Inland Revenue. Once a person has made a lump sum payment it is ‘locked in’ until they’re eligible to withdraw their savings.

KiwiSaver contributions are calculated on a person’s before-tax pay. However, they still pay tax on the full amount that they earn. For example, if they earn $100 and had 8 per cent ($8) KiwiSaver contributions deducted, they would still pay tax on the full $100.