Auto-enrolling and opting in differences
Most of the time you auto-enrol new eligible employees into KiwiSaver. But some employees do not have be auto-enrolled into KiwiSaver when they start. These employees ask to be in KiwiSaver. Making a choice to join is called ‘opting in’.
There's a difference between an employee who opts in and one who auto-enrols and that is your auto-enrolled employee can choose to leave KiwiSaver. It’s called ‘opting out’.
Employees who opt into KiwiSaver cannot choose to opt out later.
Auto-enrolments into KiwiSaver
New employees aged over 18 and under 65 who are not already in KiwiSaver must be auto-enrolled by you.
Enrol employees into KiwiSaver
Employees who opt into KiwiSaver
There are some employees who do not have to auto-enrol into KiwiSaver through you. If they’re eligible, they choose to opt in. These are:
- existing employees
- new employees you cannot auto-enrol because of the type of employee they are, such as casual or temporary employees.
Employees who choose to opt into KiwiSaver
New employees already in KiwiSaver
If your new employee is already in KiwiSaver, ask them to fill in a KiwiSaver deduction form - KS2.
Your employee uses the KS2 to tell you:
- the rate they want you to deduct KiwiSaver contributions from their pay
- they’re on a savings suspension - you’ll need to see their suspension notice before you can stop their KiwiSaver deductions.
Employees who do not tell you their age
Employees might not give you their date of birth. Some may also give you wrong information. This makes it hard to know if they’re eligible for KiwiSaver or if you auto-enrol them.
In either case, auto-enrol your new employee. We do not penalise you. If their enrolment is a mistake, they can opt out later.
KiwiSaver deductions from employee pay
