KiwiSaver Employer Contribution After ESCT Calculator NZ

This calculator shows how much of your employer's KiwiSaver contribution actually lands in your account once employer superannuation contribution tax, or ESCT, is taken out, a deduction many New Zealanders do not realise is happening. Your employer contributes a percentage of your pay to your KiwiSaver, commonly the minimum three percent and rising over the next few years, and it is easy to assume the full amount goes in. But before it reaches your account, the government takes ESCT off the top, at a rate set by your total of salary plus the employer contribution, ranging from 10.5 percent for low incomes up to 39 percent for the highest. So a higher earner sees a bigger slice taken than someone on a modest income, and the net amount invested is less than the headline figure. You enter your salary and your employer's contribution rate, and the calculator works out the gross employer contribution, the ESCT rate that applies, the tax deducted, and the net amount that actually goes into your KiwiSaver each year. Use it to understand your true employer contribution and to see how it changes as the minimum rate rises. ESCT is unavoidable, but knowing the net figure helps you plan your retirement savings realistically. General information, not tax advice.

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$
%
$1,715
net employer contribution a year after ESCT
Gross contribution$2,450
ESCT rate30%
ESCT deducted$735

ESCT rate is set by your salary plus the employer contribution. It is deducted before the money reaches your KiwiSaver. General information, not tax advice.

How it works

The gross employer contribution is your salary times the contribution rate. The ESCT rate is set by your salary plus that contribution: up to 18,720 is 10.5 percent, up to 64,200 is 17.5 percent, up to 93,720 is 30 percent, up to 216,000 is 33 percent, and above that 39 percent. ESCT is the gross contribution times that rate, and the net contribution is what remains.

Worked example

On a 70,000 dollar salary with a 3.5 percent employer contribution, the gross contribution is 2,450 dollars. Salary plus contribution is 72,450 dollars, in the 30 percent ESCT band, so 735 dollars of ESCT is taken, leaving 1,715 dollars in your KiwiSaver.

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Data sources: the rates and thresholds on this page are maintained against Inland Revenue. Figures are checked twice monthly.

Frequently asked questions

What is ESCT?

Employer superannuation contribution tax, or ESCT, is the tax deducted from your employer's KiwiSaver contribution before it reaches your account. The rate depends on your total of salary plus employer contribution, from 10.5 up to 39 percent.

Does ESCT reduce my employer contribution?

Yes. The headline employer contribution, often 3.5 percent of your pay, has ESCT taken out, so the amount that actually lands in your KiwiSaver is less. The higher your income, the higher the ESCT rate and the more is deducted.

What are the ESCT rates?

The rate is set by your salary plus employer contribution: up to 18,720 is 10.5 percent, up to 64,200 is 17.5 percent, up to 93,720 is 30 percent, up to 216,000 is 33 percent, and above that 39 percent.