Reference

NZ ESCT Rates 2026/27

Last updated: May 2026

5 Tiers

10.5% to 39%

$216,000

Top Tier Threshold

Prior Year

Income Basis

Employer Superannuation Contribution Tax (ESCT) is the tax an employer deducts from the contributions it makes to an employee's KiwiSaver or other complying superannuation fund. The employer's 3.5% contribution is paid before ESCT, then ESCT is deducted, so ESCT reduces the amount that lands in the employee's account. The rate is set per employee based on their prior-year pay plus employer contributions.

ESCT Calculator KiwiSaver Calculator Employer PAYE Cost

ESCT Tiers (from 1 April 2025, unchanged for 2026/27)

ESCT rate	Employee's prior-year income (pay + employer contributions)
10.5%	$0 to $16,800
17.5%	$16,801 to $57,600
30%	$57,601 to $84,000
33%	$84,001 to $216,000
39%	$216,001 and over

Source: IRD - Employer superannuation contribution tax (ESCT). Thresholds were aligned with the personal tax brackets from 1 April 2025.

How the Rate Is Set

Situation	Basis for the ESCT rate
Worked the full previous tax year	Total salary or wages plus employer cash contributions in the previous year
New employee, or worked part of the year	Estimated annual salary plus employer contributions for the current year

The rate is set once and applies for the tax year (a "set and forget" approach), so it is worth checking it is right at the start of each year. ESCT does not apply to an employee's own KiwiSaver contributions, only to the employer's contributions. An alternative for some funds is to have the employee elect to have contributions taxed at their own PIR-style rate, but for most KiwiSaver schemes the ESCT tiers apply.

Source: business.govt.nz - ESCT. See also our KiwiSaver Rates and NZ Tax Rates references.

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