KiwiSaver Government and Employer Contributions
If you want to pop a few more pennies aside, there are easy ways to make more contributions to your KiwiSaver account.
Automatic employee contributions
If you're in paid employment, you'll make regular, automatic contributions to your Booster KiwiSaver Scheme account directly from your salary or wages. Your KiwiSaver contributions are calculated as a percentage of your salary or wages before they're taxed – your 'gross' salary or wages and are taken from your after-tax pay.
You choose to contribute at one of the following rates: 3% 4% 6% 8% 10%
The default rate is 3% and this is the minimum you can contribute.
You can change your contribution rate by:
- Updating it on mybooster or;
- Sending your employer an email or letter telling them of your new contribution rate or;
- Completing and giving the KiwiSaver deduction form (KS2) to your employer
Your employer must contribute to your KiwiSaver, although there are some exceptions.
Your employer must pay an amount that's equal to at least 3% of your 'gross' salary or wages – what you're paid before tax is taken off. Tax is deducted from employer contributions before they credit your KiwiSaver account. Contributions can take up to 4-6 weeks to show in your KiwiSaver account.
If you've got a paid job and are making KiwiSaver contributions directly from your salary or wages, your employer has to make contributions too.
Employer contributions will be equal to at least 3% of your pay, but some employers may choose to contribute more.
Your employer won't have to make contributions if:
- you're under 18 years old
- you're eligible to make retirement withdrawals, currently at the age of 65
- you're not making contributions, for example during a savings suspension
- they're already paying into another eligible registered superannuation scheme for you.
Although your contributions are deducted in line with your pay cycle, they don't appear in your KiwiSaver account straight away. There can be a small delay of around 4-6 weeks from when your contributions are deducted to when they show up in your KiwiSaver account. This is because your employer forwards your contributions to IRD first.
Once IRD have processed the contributions, they are sent to us to put into your account.
Government contribution is like a reward for being a great saver. For every $1 you contribute to your KiwiSaver account, the government gives you $0.50c up to $521.43 each year.
Your KiwiSaver provider automatically adds the government contribution from Inland Revenue (IR) to your KiwiSaver account.
Check your government contribution on mybooster.
Making extra contributions
Making extra contributions is a great way to add to your retirement savings – especially if you’re self-employed and don't pay yourself a salary or wages.
These voluntary contributions can also help ensure you receive a government contribution each year if your employee contributions aren't quite enough.
You can choose to make regular contributions or occasional or one-off payments for yourself or another Booster KiwiSaver Scheme member.
The best way to make regular extra contributions is to set up a direct debit. You can do this in:
To pay Booster through online banking, you follow the same process as setting up a bill payment. You will need your member number and IRD number.
To make a payment, just search ‘Booster KiwiSaver Scheme’ as a payee and follow the prompts.
Contribute via Inland Revenue
To make a contribution, follow these steps:
- Log in to your online banking and choose to make a tax payment
- Enter your IRD number and how much to pay
- Select the ‘KSS’ tax type to ensure your payment goes to your KiwiSaver account
- Choose period '0'
Learn more about contributing via Inland Revenue
After you've been a KiwiSaver member for 12 months, you can apply to take a 'savings suspension'. A savings suspension is a break from making employee contributions and can last anywhere from 92 days to 1 year – it's up to you.
Your employer doesn't have to make contributions while you're on a savings suspension, but must start again once the savings suspension ends. You don't have to give a reason for taking a savings suspension, and there's no limit to the number of times you can take one. You can also renew a savings suspension if you need to.
To apply for a savings suspension, you'll need to contact Inland Revenue.
Early savings suspension
If you haven't been a member for 12 months but are experiencing financial hardship, you can apply for an early savings suspension. The standard length of an early savings suspension is three months, but Inland Revenue will work with you to decide what's best for your situation.
Read more about KiwiSaver savings suspension on the Inland Revenue website.