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.
Last updated:
21 Apr 2026