What is Employer Contribution?
The employer contribution is the 3% of your gross salary that your employer must contribute to your KiwiSaver account.
Detailed Explanation
By law, employers must contribute at least 3% of your gross (before-tax) salary to your KiwiSaver if you are contributing. This is essentially free money added to your retirement savings.
Example
If you earn $60,000 per year and contribute 3% ($1,800), your employer also contributes 3% ($1,800). Your total annual KiwiSaver contribution is $3,600.
Frequently Asked Questions
Can my employer contribute more than 3%?
Yes, some employers voluntarily contribute more. Check your employment agreement.
Do I get employer contributions if I am self-employed?
No, employer contributions only apply to employees.