Posted on

KiwiSaver contributions and the minimum wage

Some employers adopt a “total remuneration” approach to compulsory KiwiSaver contributions, meaning the employee is paid a set rate of pay that includes the employer’s compulsory contributions to their KiwiSaver account.  As such, if the employee joins KiwiSaver then their pay is adjusted down to offset the compulsory employer contribution (this is in addition to the deduction for their own personal KiwiSaver contribution).  If they don’t join KiwiSaver, then they get their rate full pay without any deductions for KiwiSaver.

This sort of arrangement does comply with the KiwiSaver Act 2006, but it must be agreed to and adequately specified in the employment agreement.

Continue reading → KiwiSaver contributions and the minimum wage

Posted on

The latest minimum wage

The adult minimum wage is now $16.50 per hour, which is up 75 cents from last year’s minimum rate. The starting out and training rates have also increased 40 cents to $13.20 per hour.

This is the new Government’s first step in progressively increasing the minimum wage to $20.00 per hour by 2020 (with the final increase to take effect in April 2021).  We expect the minimum wage to increase by at least $1.00 per year in order to hit this target so be prepared for your wage costs (or your pay packet) to go up.

Need help on minimum entitlements?

Contact Us 

Please do not substitute this article for professional advice.