Skip to main content

Security From 30 October, we are increasing the security of our websites. If you have an old browser, you may need to update it.

Tāke takoha whakatātanga kaitukumahi (ESCT) Employer superannuation contribution tax (ESCT)

Back

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 deduct ESCT from each employer contribution.
  • Your employer contribution is included in your employee’s gross salary or wage. Tax is deducted under the PAYE rules.