Reference
NZ ESCT Rates 2026/27
Last updated:
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 CostESCT Tiers (from 1 April 2025, unchanged for 2026/27)
| ESCT rate | Employee's prior-year income (pay + employer contributions) |
|---|---|
| 10.5% | $0 to $18,720 |
| 17.5% | $18,721 to $64,200 |
| 30% | $64,201 to $93,720 |
| 33% | $93,721 to $216,000 |
| 39% | $216,001 and over |
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.