How to contribute to your KiwiSaver account

Contributing to your KiwiSaver account regularly can help your balance grow into a healthy first home deposit or retirement fund.

Here's our guide to the different ways you can make KiwiSaver contributions, and some of the details you should bear in mind.

Contributions made out of your pay

If you are an employee and a KiwiSaver member, a portion of each pay cheque will automatically go into your KiwiSaver account via your employer's payroll system. There are different rates at which you can contribute via your pay cheque, ranging from the default rate of 3% up to 10%. You can change your contribution rate through your employer or Inland Revenue. 

Any KiwiSaver contribution is an investment in your future, but opting for a higher rate means your balance should grow more quickly. 

Employer contributions

If you contribute to KiwiSaver via your employer, they must also contribute 3% of your pay to your KiwiSaver account. There are a few exceptions to this: you won't be eligible if you're under 18 or over 65, if your employer is already contributing to another eligible retirement scheme for you, or if you've suspended your own KiwiSaver contributions. 

While 3% might not sound like much on paper, that's an extra $3 before tax for every $100 you earn. If you're on a salary of $80,000 per annum, that's an extra $2,400 a year before tax that you're otherwise missing out on if you're not in KiwiSaver.

Government contributions

On top of your contributions and those made by your employer, the Goverment will also contribute 50 cents for every dollar you contribute up to $521.43 each year. To be eligible for the Government top up, you'll need to have contributed at least $1,042.86 between 1 July and 30 June. 

There are a couple of exceptions to this. If you join KiwiSaver partway through the July-June year, you won't be able to receive the full Government contribution. Also, you need to be at least 18 so if you turn 18 during the year, the Government contribution will be lower. 

Voluntary contributions

You can also make voluntary contributions to your KiwiSaver account on top of the amount that comes out of your pay. You might do this to make sure you qualify for the Government top up or if you're focused on saving for your first home. 

Voluntary contributions can be made via Inland Revenue or direct to your KiwiSaver provider with a bank transfer. Once added, this money will be locked in until you turn 65 or make a first home withdrawal. Some people find this a great way to build savings that can't be touched, while others prefer to keep their money in more accessible accounts in case their situation changes.

Time off from your KiwiSaver contributions

You can suspend your KiwiSaver contributions if your financial situation changes, as long as you've been a KiwiSaver member for 12 months or more. If you've been in KiwiSaver for less than 12 months, you may need to apply for permission from Inland Revenue to suspend your contributions. 

But remember – if you suspend your own KiwiSaver contributions, your employer contributions will also stop. And even if you suspend your contributions for only a few months, you might not meet the threshold for the full Government contribution. 

We recommend carefully weighing up whether you need to suspend your contributions, as there are lots of benefits to being in KiwiSaver.

Medical Funds Management Limited is the manager and issuer of investments in the MAS KiwiSaver Scheme (the Scheme).

A copy of the Product Disclosure Statement (PDS) for the Scheme is available here.

If you would like to talk to a MAS adviser, phone 0800 800 627 or email us here.