KiwiSaver Contribution Guide: Rates, Employer Contributions & Tax
Everything you need to know about KiwiSaver contribution rates, employer contributions, ESCT, and how to choose the right rate for your situation.
Published 1 February 2026
KiwiSaver is New Zealand’s voluntary workplace savings scheme, designed to help Kiwis save for retirement and their first home. Here’s a complete guide to how contributions work.
Employee Contribution Rates
You can choose to contribute 3%, 4%, 6%, 8%, or 10% of your gross salary. The rate is applied to your full salary before tax.
| Rate | On $60,000 salary |
|---|---|
| 3% | $1,800/year |
| 4% | $2,400/year |
| 6% | $3,600/year |
| 8% | $4,800/year |
| 10% | $6,000/year |
Your contribution is deducted from your gross pay, which reduces your take-home pay.
Employer Contributions
Your employer must contribute a minimum of 3% of your gross salary. Most employers contribute exactly 3% — some offer more as a benefit.
Note: employer contributions are subject to Employer Superannuation Contribution Tax (ESCT), which reduces the net amount that lands in your fund.
ESCT — The Hidden Tax on Employer Contributions
ESCT is a tax on employer KiwiSaver contributions, paid by the employer. The effective rate depends on your income:
| Employee income | ESCT rate |
|---|---|
| Up to $16,800 | 10.5% |
| $16,801–$57,600 | 17.5% |
| $57,601–$84,000 | 30% |
| $84,001–$216,000 | 33% |
| Over $216,000 | 39% |
Total Contributions
Example: $70,000 salary, 4% employee rate
- Employee: $70,000 × 4% = $2,800
- Employer (gross): $70,000 × 3% = $2,100
- ESCT on employer (at 30%): $630 deducted
- Employer net to fund: $1,470
- Total to fund: $4,270/year
Choosing Your Contribution Rate
A higher rate means faster retirement savings growth, but less take-home pay. Consider:
- Can you afford to reduce your take-home pay?
- Are you saving for a first home (you’ll need 3+ years in KiwiSaver)?
- Does your employer match beyond 3%?
KiwiSaver and First Home Purchases
After contributing to KiwiSaver for 3+ years, you may be able to withdraw savings for a first home deposit. Check the eligibility criteria with your KiwiSaver provider.
Use our KiwiSaver Calculator to see your contributions at any rate.