KiwiSaver employer contributions and PAYE
A general overview of employer KiwiSaver contributions, ESCT and payday filing. Confirm current rates with Inland Revenue.
Employers must contribute to KiwiSaver for eligible employees who are enrolled. The minimum employer contribution rose from 3% to 3.5% of gross pay for pay days on or after 1 April 2026, and the default employee rate rose to 3.5% too. Employer contributions are subject to Employer Superannuation Contribution Tax (ESCT), which the employer deducts and pays to Inland Revenue. Each pay is reported to Inland Revenue through payday filing. This page is general information and not payroll advice. 4invoices is an invoicing tool. It does not run payroll, calculate PAYE, ESCT or KiwiSaver, or file payday reports.
- Minimum employer contribution: 3.5% of gross pay from 1 April 2026.
- ESCT applies to employer contributions, at a rate that depends on the employee's pay.
- Employers file payday information with Inland Revenue.
- 4invoices does not do payroll.
How it works
Check whether an employee is enrolled. Eligible new employees are automatically enrolled and can opt out during a set window. Confirm the current rules on ird.govt.nz.
Deduct the employee's contribution from gross pay at their chosen rate.
Work out the employer contribution, at least the minimum rate on gross pay, and the ESCT on it.
Report each pay through payday filing. Inland Revenue then passes the contributions to the employee's KiwiSaver provider.
Use payroll software or your accountant for these calculations. Rates and rules change, so use Inland Revenue's current guidance.
Legal references
- KiwiSaver Act 2006 — employer contribution and enrolment rules.
- Inland Revenue, KiwiSaver changes (ird.govt.nz/kiwisaver-changes) — rate change from 1 April 2026.
- Inland Revenue guidance on ESCT and payday filing.
Frequently asked questions
What is the minimum employer KiwiSaver contribution?
3.5% of gross pay for pay days on or after 1 April 2026. It was 3% before that. Check ird.govt.nz for current details and exceptions.
What is ESCT?
Employer Superannuation Contribution Tax is tax on an employer's contribution to an employee's KiwiSaver or other superannuation scheme. It is deducted by the employer and paid to Inland Revenue. The rate depends on the employee's pay.
Is payday filing due each pay?
Employers file payday information for each pay. Inland Revenue sets the filing deadline, so check ird.govt.nz for the current requirement.
Does 4invoices calculate KiwiSaver or run payroll?
No. 4invoices does not do payroll, PAYE, ESCT or KiwiSaver. It creates invoices with GST per line and lets you download them as PDF.