KiwiSaver – 1 April 2009 Changes
From 1 April 2009 there are a number of notable changes to KiwiSaver.
- The minimum employee contribution is now 2% of your gross pay. You can choose to contribute either 2%, 4% or 8% of your gross pay to KiwiSaver. This means that you can reduce your contribution to the minimum, but this may affect the amount:
- of member tax credit you receive
- you can divert to your mortgage
- The $40 annual fee subsidy has been removed.
- The compulsory employer contribution is now 2%. Your employer will have increased their contribution to 2%. This won't increase in future years.
- The KiwiSaver Act has been amended and the Employment Relations Act amendment relating to KiwiSaver has been repealed. This means that KiwiSaver employer contributions must be paid in addition to your gross salary and wages, unless you've agreed otherwise with your employer, through good faith bargaining.
NB: To change your contribution rate, you must apply in writing to your employer.
For more information go to
http://www.ird.govt.nz/news-updates/campaign-kiwisaver-members
