Skip to main content

Service changes and updates IR offices, myIR and phone lines (SPK2IR) are unavailable until the morning of Thursday 28 October for planned system maintenance. Find out more

Resurgence Support Payment (RSP) You will not be able to apply for the RSP in myIR until the morning of Thursday 28 October. Businesses affected by the alert level increase that started on 17 August can apply in myIR from 28 October. Applications for a 4th payment round are planned to open on 29 October. Find out more

Resurgence Support Payment (RSP) The government has announced an increase to the amount and frequency of the RSP from 12 November. Find out more

Watch our video for an overview of how ESCT works in practice

Employer superannuation contribution tax (ESCT) is deducted from your employer contributions to your employees' KiwiSaver or complying funds.

Complying funds are superannuation schemes with similar rules to KiwiSaver. For example, members’ savings are locked in until they’re eligible for NZ Superannuation.

You need to work out the ESCT rate for each employee. The rate depends on how much your employee earns and how long they’ve worked for you.

You do not pay ESCT if your employee asks you to deduct money from their pay to put into a superannuation scheme. These are not employer contributions.

There are 2 ways to deduct ESCT, you can either:

  • deduct ESCT from each employer contribution
  • include your employer contribution in your employees' gross salary or wage. Tax is deducted under the PAYE rules.

What ESCT rate should I use for my employee?

You need to work out the ESCT rate for each employee. You do not need to know how much an employee earns in any other jobs they may have.
loading component...
Last updated: 21 Sep 2021
Jump back to the top of the page