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KiwiSaver Poua he Oranga

Employees with special circumstances

KiwiSaver may affect some of your employees with special circumstances:

Employees aged 60 years or over

Any employee who joined KiwiSaver before 1 July 2019 and who was 60 years or over when they joined, must remain a KiwiSaver member for a minimum of 5 years. As a KiwiSaver member for those 5 years:

  • they must have KiwiSaver deductions made from their salary (unless they’re on a savings suspension)
  • you must pay compulsory employer contributions for the 5 years provided the employee is still required to have deductions made from their pay.

An employee may continue their deductions beyond the 5 years. To stop they must give you a Non-deduction notice (KS51).

Find out more about employees eligible to withdraw savings

State services employees

State services employees who are serving overseas can join KiwiSaver if they:

  • remain employed on New Zealand terms and conditions, and
  • are serving in a jurisdiction where offers of KiwiSaver scheme membership are lawful, and
  • meet other eligibility requirements.

Employees on accident compensation

If you take part in Accident Compensation Corporation's (ACC) partnership programme, or have an ACC employer reimbursement agreement, you continue paying an employee after an accident. Continue to deduct any KiwiSaver member contributions from these payments.

To stop member contributions being deducted, your employee can go on a savings suspension. If your employee continues to make contributions, you may choose to continue making employer contributions, but you do not have to.

When ACC (and not you) pays weekly compensation to your employee, you don't need to:

  • deduct member contributions, or
  • make compulsory employer contributions.

Employees on paid parental leave

If you continue to pay an employee a salary or wage while they are receiving paid parental leave, keep deducting member contributions and making compulsory employer contributions unless they are on a savings suspension.

When an employee returns to work, you'll need to deduct KiwiSaver contributions from their pay.

Changing jobs with the same employer

The automatic enrolment rules apply if an employee's new workplace has a separate payroll.

Example

Jenny works as a team leader for a hardware store in Hamilton and is not a KiwiSaver member. She moves to Auckland to be a team leader at a new branch. She is automatically enrolled in KiwiSaver, as the new branch has a separate payroll to the Hamilton branch.

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