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The Employee has the option of joining KiwiSaver, and as a new employee will be automatically enrolled into KiwiSaver. KiwiSaver is a voluntary, work-based savings initiative to help New Zealanders with their long-term saving for retirement. More information about KiwiSaver, including what employers and employees need to do to start a savings scheme, is available from http://www.kiwisaver.govt.nz.
When an employee is enrolled into a KiwiSaver scheme the Employee's KiwiSaver contributions will be deducted from their pay. The Employer will also make employer contributions to the Employee's KiwiSaver scheme if the employee is aged 18 years or over. A new employee has limited time to opt out of the KiwiSaver scheme, up to eight weeks from their first day of employment, although a late opt-out is sometimes possible. An existing employee who is eligible for KiwiSaver has the option of joining a KiwiSaver scheme. If an existing employee decides to join KiwiSaver they will not be able to opt out. The Employee should inform the Employer if they are already a member of KiwiSaver. See the enclosed information pack or visit http://www.kiwisaver.govt.nz for more information.
The Employee is entitled to an employer contribution to their KiwiSaver account or their complying account, if they are aged 18 years or over, under the new KiwiSaver legislation.
From 1 April 2009, employers will contribute a minimum of 2% of employees' gross salary or wage. Employees are expected to contribute a minimum of 2% of their gross salary or wage. The Employee contribution will be deducted from the Employee's pay.
For further information regarding employee and employer contributions to KiwiSaver, visit http://www.kiwisaver.govt.nz.