Changing your KiwiSaver contribution rate


Employees need to discuss changing their contribution rate with their employer, or alternatively, fill out the required forms if they are self-employed.

The default contribution rate is 3% of an individual’s pay, but employees can change to either of the following rates:  3%, 4%, 6%, 8%, or 10%. Although the contribution rate may only be changed every 3 months, if employees wish to change the rate prior to the end of the 3 months, then they should alert their employer of this in writing. Further, although the maximum rate is 10%, if employees want to exceed this rate, then they should make a direct payment to their scheme provider.

If the individual is not an employee, then the details of their contributions will be set out in the contract with their KiwiSaver provider. For example, if they are: self-employed, a contractor, not working, receiving a benefit then, there may be a minimum annual sum or specific payment periods that apply (e.g. monthly, quarterly). Therefore reducing or increasing contributions may need to be discussed with KiwiSaver providers.

Posted on 19 Nov 2020, under Super.