New Zealand KiwiSaver employer contributions and ESCT

Employer KiwiSaver contributions have a gross contribution rate and a separate tax deduction, with ESCT bands based on employment income.

Minimum employer contribution

3.5% of gross salary or wagesInland Revenue, employer KiwiSaver contributions

ESCT threshold $1–$18,720

10.5%Inland Revenue, 2026–27 payroll rules, pages 7 and 92–93

ESCT threshold $18,721–$64,200

17.5%Inland Revenue, 2026–27 payroll rules, pages 7 and 92–93

ESCT threshold $64,201–$93,720

30%Inland Revenue, 2026–27 payroll rules, pages 7 and 92–93

ESCT threshold $93,721–$216,000

33%Inland Revenue, 2026–27 payroll rules, pages 7 and 92–93

ESCT threshold $216,001 upwards

39%Inland Revenue, 2026–27 payroll rules, pages 7 and 92–93

The compulsory employer contribution

The minimum compulsory employer contribution is 3.5% of gross salary or wages unless the employee has a temporary rate reduction. Contributions apply to eligible members aged 16 and over but under 65, where KiwiSaver deductions are made from pay and the employee is not a member of a defined benefit scheme. For an employee with a temporary rate reduction, the employer can choose to reduce its contribution to 3%. Voluntary employer contributions can exceed the minimum. Inland Revenue, employer KiwiSaver contributions (opens in a new tab).

Employer contributions have their own tax

Employer superannuation contribution tax, or ESCT, is deducted from employer contributions to KiwiSaver or complying funds. It does not apply to money the employee asks the employer to deduct from their own pay for a superannuation scheme. Employers determine a rate for each employee without needing the employee's earnings from other jobs. Employer contributions can instead be included in gross salary or wages and taxed under PAYE where that treatment is agreed. Inland Revenue, employer superannuation contribution tax (opens in a new tab).

The published ESCT income bands

For the 2026–27 tax year, the published ESCT table gives 10.5% for a threshold amount of $1–$18,720; 17.5% for $18,721–$64,200; 30% for $64,201–$93,720; 33% for $93,721–$216,000; and 39% for $216,001 upwards. The selected rate applies to each dollar of the employer contribution. The threshold amount combines salary or wages with gross employer superannuation contributions before ESCT is withheld. Inland Revenue, 2026–27 payroll rules, pages 7 and 92–93 (opens in a new tab).

Which year's income sets the rate

For employment covering the whole previous tax year, the threshold uses that employer's salary or wages and gross employer contributions for that previous year. Otherwise it uses the employer's estimated salary or wages and contributions for the current tax year. The threshold is set at the beginning of the tax year and recalculated the following year. Payroll calculates employer contributions using complete dollars and cents, then drops cents from the contribution base before calculating ESCT. Inland Revenue, 2026–27 payroll rules, pages 7 and 92–93 (opens in a new tab).

The calculator is an annual estimate

The KiwiSaver calculator estimates annual employer contributions and ESCT using entered salary. It uses current salary for the estimated ESCT band rather than the employer's prior-year payroll records, and does not reproduce per-payment whole-dollar truncation. Its annual estimates and projected balances are scenarios rather than payroll deduction instructions. Money Financial, New Zealand KiwiSaver calculator (opens in a new tab).

Scope of this explanation

This is general information about employer contributions and their tax treatment. It does not determine an employment agreement, classify special payment circumstances or confirm an individual's contribution eligibility. No worked payroll example is provided. The guide does not establish the net contribution credited on a particular payslip or decide how an agreed remuneration package applies to a specific employee.

Related guides