If you employ staff in New Zealand, KiwiSaver gives you legal obligations from the first day a new employee starts: enrolling eligible new employees, deducting their contributions from pay, and making the employer contribution each payday. This page sets out those employer KiwiSaver obligations from the employer’s side, using Inland Revenue’s employer guidance.
If you’re an employee wondering what your employer has to pay you, see the KiwiSaver employer contribution for employees. Whether KiwiSaver is compulsory for the employee (it isn’t: automatically enrolled employees can opt out) is covered in how to join KiwiSaver.
Employer KiwiSaver Obligations at a Glance
| Obligation | Detail |
|---|---|
| Automatic enrolment | Enrol eligible new employees aged 18 to 65 who aren’t already in KiwiSaver, using the New employee and KiwiSaver details form (IR346K) |
| Employee deductions | Deduct the employee’s chosen rate (3.5%, 4%, 6%, 8% or 10% of gross pay) each payday; 3.5% if they don’t choose |
| Employer contribution | A compulsory contribution each time you pay an eligible employee, at least 3.5% of gross pay, on top of wages |
| ESCT | Deduct employer superannuation contribution tax from your employer contributions |
| IRD filing | Include KiwiSaver deductions and contributions in your regular PAYE filing |
| KS2 form | New employees already in KiwiSaver use the KiwiSaver deduction form (KS2) to tell you their rate, or that they’re on a savings suspension |
Automatic Enrolment of New Employees
Inland Revenue requires employers to automatically enrol new employees aged over 18 and under 65, but not new employees who are already in KiwiSaver. For each new employee you fill out the IR346K form (in myIR or on paper) and send it before their first payday, or with the employment information (IR348) that includes their first pay.
To be eligible, an employee must be aged 18 to 65 and living (or normally living) in New Zealand, and be a New Zealand citizen or entitled to be in New Zealand indefinitely, an Australian citizen, or a New Zealand or Australian residence permit holder. Employees on a temporary, visitor, work or student visa can’t join (KiwiSaver on a work visa has the employee’s side).
Existing employees, and new employees you can’t automatically enrol (for example some casual or temporary employees), can choose to opt in instead. See KiwiSaver for casual employees.
Opt-Outs
Only employees you automatically enrolled can opt out; employees who opted in cannot opt out later. An automatically enrolled employee can opt out only between 2 and 8 weeks of starting work (on or after day 14 and on or before day 56), using the KiwiSaver opt-out request (KS10), which you send to Inland Revenue. Late requests go to Inland Revenue directly. The employee side of this is in opting out of KiwiSaver.
Payroll Deductions
You start deductions from an automatically enrolled employee’s first pay, and for an employee who opts in, from their first pay after you’re notified. An employee who doesn’t choose a rate is deducted at the 3.5% default.
Employees can change their rate in writing, on a KS2, through their provider or in myIR; they can only change it once every 3 months unless you agree to a shorter timeframe. You stop deductions when an employee gives you a savings suspension notice approved by Inland Revenue, or a non-deduction notice (KS51) because they’re eligible to withdraw their savings. If you’re notified of a temporary rate reduction, you lower their deductions to 3%. Both are covered in savings suspensions and temporary rate reductions.
The Employer Contribution
Inland Revenue’s rule, as it applies to each employee: If you're aged 16 or over and under 65, in KiwiSaver and contributing from your pay, your employer must contribute at least 3.5% of your gross pay (unless you're on a temporary rate reduction or in a defined benefit scheme), less employer superannuation contribution tax (ESCT).
The minimum rose from 3% on 1 April 2026 and is scheduled to rise to 4% on 1 April 2028. Where an employee has a temporary rate reduction, you can choose to match your employer contribution to their lowered 3% rate. You can contribute more than the minimum voluntarily.
How the contribution is calculated and what reaches the employee’s account is set out in the KiwiSaver employer contribution guide. ESCT is deducted from the contribution at a rate based on the employee’s pay; the rate thresholds are in the ESCT guide.
Penalties
Inland Revenue can charge a KiwiSaver penalty for not providing KiwiSaver information to employees or to Inland Revenue, not making the correct deduction, not automatically enrolling an eligible new employee (unless you’re an exempt employer), or not paying the employer contributions that are compulsory. Standard tax penalties, such as late payment penalties and use of money interest, also apply to unpaid deductions and contributions.