When you start a new job in New Zealand, KiwiSaver enrolment is automatic — but there are important decisions to make in the first few weeks. Here’s what happens and how to handle it well.
Auto-Enrolment: How It Works
Under the KiwiSaver Act, most employees starting a new job are automatically enrolled in KiwiSaver. Your employer deducts contributions from your pay at the default rate of 3% (you can change this, but 3% is where you start).
Auto-enrolment applies if you are:
- A New Zealand citizen or permanent resident
- Aged 18–65
- Starting a new PAYE employment relationship
Auto-enrolment does NOT apply if you are:
- Already a KiwiSaver member
- Under 18 or 65 and over
- A casual or contracting employee paid outside PAYE
The Opt-Out Window
You have 2–8 weeks from your start date to opt out of KiwiSaver if you don’t want to join. Outside this window, you cannot opt out (though you can apply for a savings suspension after 12 months of membership).
To opt out, complete a KS10 form and return it to your employer or to IRD directly. Your employer will stop deductions and refund any contributions made so far.
Think carefully before opting out — you also forgo employer contributions and the Member Tax Credit. See the KiwiSaver opt-out guide for a full breakdown.
Choosing Your Contribution Rate
The default contribution rate for new employees is 3%. You can change it (up or down to any of the standard rates) via myIR or by completing a KS2 form and giving it to your employer.
Standard contribution rates: 3%, 4%, 6%, 8%, 10%
| Rate | Fortnightly deduction ($65,000 salary) | Employer match (3%) |
|---|---|---|
| 3% | $75 | $37.50 |
| 4% | $100 | $37.50 |
| 6% | $150 | $37.50 |
| 8% | $200 | $37.50 |
| 10% | $250 | $37.50 |
Note: employer contributions are fixed at the legal minimum (3%) regardless of your rate, unless your employment agreement specifies more.
Choosing Your Provider
If you don’t choose a provider within the enrolment window, IRD will assign you to a default provider — one of nine government-appointed default KiwiSaver providers, in a balanced fund.
This isn’t necessarily bad — balanced is a reasonable default. But you may prefer a different provider or fund type for your situation.
How to choose a provider:
- Decide on your fund type (see below)
- Compare fees using Sorted.org.nz
- Enrol directly with your chosen provider before or shortly after starting your job
- Give your provider’s details to your employer
If IRD has already assigned you to a default provider, you can switch at any time — it’s free and takes around 10–15 business days.
Choosing Your Fund Type from Day One
The most important early decision is your fund type. As a new employee:
| Age | First home plans | Recommended fund |
|---|---|---|
| Under 35 | No purchase within 5 years | Growth or aggressive |
| Under 35 | Buying within 3–5 years | Balanced |
| Under 35 | Buying within 1–2 years | Conservative |
| 35–50 | Retirement focus | Growth or balanced |
| 50–65 | Retirement approaching | Balanced |
See how to choose a KiwiSaver fund for a full decision guide.
Employer Contributions — What You’re Entitled To
Your employer must contribute a minimum of 3% of your gross salary to your KiwiSaver if you are an eligible employee making contributions. This is on top of your salary — not deducted from it.
ESCT (Employer Superannuation Contribution Tax) is deducted from employer contributions before they reach your account. The amount depends on your income:
| Salary | ESCT rate | Employer contribution on $70k salary | Net to account |
|---|---|---|---|
| Up to $16,800 | 10.5% | $2,100 | $1,880 |
| $16,801–$57,600 | 17.5% | $2,100 | $1,732 |
| $57,601–$84,000 | 30% | $2,100 | $1,470 |
| Over $84,000 | 33% | — | — |
The Member Tax Credit — Claim It From Year One
If you’re 18+ and contribute at least $1,042.86 in the KiwiSaver year (1 July – 30 June), the government contributes $521.43 to your account. This is a guaranteed 50% return on your first $1,042.86 of contributions — available from your first year of membership.
If you start a new job mid-year, your payroll contributions may not reach the threshold automatically. Consider a voluntary top-up before 30 June.
Checklist for New Employees
- Decide whether to enrol or opt out (within 2–8 weeks)
- Choose your contribution rate (or accept 3% default)
- Choose your provider (or accept the default allocation)
- Choose your fund type (growth/balanced/conservative based on your age and goals)
- Check that your employer is making 3% contributions
- Verify your PIR rate with your provider
- Aim to contribute $1,042.86 before 30 June to maximise MTC