How it's calculated
Three parties can pay into your KiwiSaver account. The calculator adds them up for one year using Inland Revenue's 2026–27 rules.
- You. Your employer deducts your chosen rate of your gross pay from each pay. From 1 April 2026 the default rate is 3.5%, up from 3%, and you can choose 4%, 6%, 8% or 10%. If you can't afford the new rate you can apply for a temporary rate reduction to stay at 3% for 3 to 12 months. Default rates are set to rise again to 4% from 1 April 2028.Inland Revenue
- Your employer. At least 3.5% of your gross pay, on top of your pay. Employer superannuation contribution tax (ESCT) is taken off it before it reaches your account.
- The government. 25 cents for every dollar you contribute between 1 July and 30 June, up to $260.72 a year. You get the full amount by contributing $1,042.86. You must be 16 or older, living mainly in New Zealand, and have taxable income of $180,000 or less.Inland Revenue
ESCT rates
The ESCT rate depends on your salary or wages plus the employer's contributions for the previous tax year (or your employer's estimate for this year if you are new):Inland Revenue
| Salary plus employer contributions | ESCT rate |
|---|---|
| Up to $18,720 | 10.5% |
| Up to $64,200 | 17.5% |
| Up to $93,720 | 30% |
| Up to $216,000 | 33% |
| Over $216,000 | 39% |
The formula
For each pay:
- Your deduction = gross pay × your rate, cut to whole cents.
- Employer contribution = gross pay × employer rate, cut to whole cents.
- ESCT = the employer contribution in whole dollars × ESCT rate, cut to whole cents.
- Employer contribution after ESCT = step 2 − step 3.
For the year: each amount × pays per year, plus any voluntary contributions. Government contribution = 25% of (your deductions + voluntary contributions), up to the maximum. The optional projection adds a year's contributions each year and applies your chosen return to the opening balance plus half the year's contributions.
Worked example
On a $70,000 salary paid fortnightly at 3.5%, with the employer paying 3.5%, $4,427 goes into KiwiSaver over the year. Your own share is $2,450, and ESCT takes $733 of the employer's contribution.
| Line | Per year |
|---|---|
| Your contributions (3.5%) | $2,450 |
| Employer contribution (3.5%) | $2,450 |
| Less ESCT at 30% | -$733 |
| Government contribution | $261 |
| Total into KiwiSaver | $4,427 |
Raising your rate to 6% lifts the yearly total to $6,177. The government contribution stays at $260.72 because you already contribute enough for the maximum.
On $25,000 a year at 3%, you contribute $750, below the amount needed for the full government contribution, which comes to $187.46.
Assumptions and limitations
- ESCT is estimated from this year's salary plus employer contributions. Your employer uses last year's figures, so the rate can differ if your pay changed.
- The government contribution is for a full year from 1 July to 30 June. It is reduced if you join, turn 16 or reach 65 part-way through the year, and it isn't paid while you live overseas.
- No employer contribution is required if you are under 16, can already withdraw your savings, are on a savings suspension, or your employer already pays into another eligible scheme for you.
- The projection is not advice. Returns, fees and tax on your fund vary, and the calculator keeps your pay and rates the same every year. Choose 0% to see contributions only.
- Total remuneration packages. Some employment agreements pay the employer contribution out of your salary package. This calculator assumes it is paid on top.
For the effect on your take-home pay, use the PAYE calculator.