Skip to main content

Budget 2024: The Government has announced FamilyBoost, a proposed new childcare payment to help eligible families with the rising costs of Early Childhood Education (ECE). Find out more:

Te KiwiSaver mā te kaimahi he āhuatanga motuhake ōna KiwiSaver for employees with special circumstances

Situations where employee KiwiSaver deductions and employer contributions can be different.
Each time you pay salary or wages to an employee in KiwiSaver.

KiwiSaver deductions and employer contributions may change depending on your employee’s situation. 

Employees aged 60 years or over

Employees who joined KiwiSaver before 1 July 2019 must be in KiwiSaver for at least 5 years before they can withdraw their savings. This is known as the 5-year lock in period. This period can finish after an employee turns 65.

An employee who joined KiwiSaver before 1 July 2019 must stay in KiwiSaver until the later of:

  • The 5-year lock in period.
  • They turn 65.

To exit their 5-year lock in period after they turn 65, the employee should contact their provider.

Employees staying in KiwiSaver aged 65 and over

If your employee is in their 5-year lock in period past their 65th birthday and does not choose to exit KiwiSaver, you must carry on:

  • deducting KiwiSaver contributions from their pay (unless they’re on a savings suspension)
  • paying compulsory employer contributions.

Keep doing this until 1 of the following happens. The employee:

  • completes their 5-year lock in period
  • exits the lock in period (they can do this anytime after becoming eligible for NZ Super)
  • retires.

When any 1 of these 3 things happen, stop compulsory employer contributions.

An employee may continue to have KiwiSaver deducted past the 5-year lock in period.

Employees on accident compensation

If you take part in the ACC partnership programme, or have an ACC employer reimbursement agreement, you continue:

  • paying an employee after an accident
  • deducting their KiwiSaver contributions from these payments.

Your employee can stop deductions from their pay with a savings suspension notice.

If your employee continues deductions, you can choose to continue making employer contributions.

When ACC pays weekly compensation to your employee, you can stop:

  • deductions from their pay
  • paying employer contributions.

Suspending KiwiSaver deductions and contributions

Employees on paid parental leave

If you continue to pay your employee while they’re receiving paid parental leave, keep:

  • deducting employee contributions
  • making employer contributions unless they’re on a savings suspension.

When an employee returns to work re-start deductions and your contributions.

Calculate KiwiSaver deductions and contributions

Last updated: 15 Feb 2024
Jump back to the top of the page