How do the Contributions Work?
The contribution rates from gross salary will be either 2 per cent, 4 per cent or 8 per cent. The contribution rate will be 2 per cent unless the higher rate has been elected by the employee. Compulsory employer contributions will be capped at 2% of salary or wages.
Anyone is able to join KiwiSaver by contracting directly with a scheme provider and making contributions. These contributions can be of any amount subject to a provider's agreement and will in many cases be eligible for the matching member tax credit contribution.
Any time after an initial 12 month contribution period an employee can apply to Inland Revenue for a contributions holiday.