KiwiSaver
KiwiSaver is New Zealand's voluntary workplace savings scheme designed to help you build a retirement fund. From 1 April 2026, employees can choose to contribute 3.5%, 4%, 6%, 8%, or 10% of their gross pay (a temporary reduction to 3% is available on request for 3–12 months). Employers must contribute a minimum of 3.5% (rising to 4% from 1 April 2028) on top of your salary (subject to ESCT). KiwiSaver funds are managed by approved providers and invested in a range of fund types from conservative to growth.
KiwiSaver savings can generally be accessed at age 65, or earlier for a first home purchase (after 3 years of membership). There is also a government contribution of up to $260.72 per year if you contribute at least $1,042.86. Hardship withdrawals are possible in limited circumstances.
New employees are automatically enrolled in KiwiSaver and can opt out within the first 2–8 weeks. If you're self-employed or not working, you can still join KiwiSaver and make voluntary contributions to receive the government contribution.
How it works
When you start a new job, you're automatically enrolled in KiwiSaver unless you're already a member or opt out within the allowed window shortly after starting. Once enrolled, you choose your own contribution rate from the available options, and you can change it at any time by notifying your employer — there's no need to wait for a new tax year.
Your employer's contribution is calculated on top of your salary and is subject to Employer Superannuation Contribution Tax (ESCT), which is deducted before the employer amount lands in your account — this is different from your own contribution, which comes straight out of your gross pay. Your KiwiSaver savings sit with a provider of your choice, invested in a fund ranging from conservative to growth, and you can switch providers or funds if your risk appetite changes.
Access to your KiwiSaver savings is restricted until age 65, with two main exceptions: a first-home withdrawal once you've been a member for at least three years, and a hardship withdrawal in limited circumstances such as significant financial difficulty. The annual government contribution is paid automatically each year based on how much you personally contributed, up to the maximum.
Example: contributions on a $60,000 salary
At a 3.5% contribution rate, your own KiwiSaver contribution on a $60,000 salary is 3.5% × $60,000 = $2,100 for the year, deducted from your pay.
Your employer contributes at least the same minimum rate, adding another $2,100 (before ESCT). Because your own contributions of $2,100 comfortably clear the $1,042.86 needed to unlock the full government contribution, you'd also receive the maximum $260.72 top-up for the year.
Frequently asked questions
Can I reduce my KiwiSaver contributions temporarily?
Yes — alongside the standard contribution rates, a temporary reduction to a lower rate is available on request for a set period if you need to free up cash flow, after which you return to your chosen rate.
Can self-employed or non-working people join KiwiSaver?
Yes — you don't need an employer to be a KiwiSaver member; you can make voluntary contributions yourself and still qualify for the annual government contribution if you meet the minimum.
What happens to my KiwiSaver when I change jobs?
Your KiwiSaver account and balance stay with your chosen provider regardless of who you work for — you just need to make sure your new employer keeps deducting contributions at your chosen rate.
Related Terms
ESCT
ESCT (Employer Superannuation Contribution Tax) is a tax that employers pay on their compulsory KiwiSaver contributions before those contributions are deposited into the employee's KiwiSaver account.
PAYE
PAYE (Pay As You Earn) is the system that New Zealand employers use to deduct income tax from employees' wages and salaries.
PIE
A Portfolio Investment Entity (PIE) is a type of managed investment fund that is taxed at the investor's Prescribed Investor Rate (PIR) rather than the standard income tax rates.
PIR
Your Prescribed Investor Rate (PIR) is the tax rate applied to income earned from Portfolio Investment Entities (PIEs), including KiwiSaver funds, PIE term deposits, and managed funds.
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