Suspending KiwiSaver contributions while receiving the wage subsidy
Wage subsidies should be processed as part of the employee’s normal wages and deductions of KiwiSaver contributions are made as normal.
Provided certain criteria are met KiwiSaver contributions may be suspended where an employee is receiving the wage subsidy. The only way to stop contributions is for the employee to request a savings suspension from Inland Revenue. They must request the savings suspension from Inland Revenue, we then notify the employer, provider and member once we have granted it. There are a few requirements:
- they have to have been a contributing member for 12 months, unless it is a matter of financial hardship
- the savings suspension is for a minimum period of 3 months, unless the employer agrees
- the savings suspension can be granted for up to one year, but can be ended early, and another can be applied for if they would like to extend it further.