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Thread: Kiwisaver Q

  1. #1
    Join Date
    Apr 2010
    Location
    Howick, Auckland
    Posts
    26

    Default Kiwisaver Q

    Morning all

    I'm just wondering if someone is able to explain the second paragraph (taken from the Kiwisaver website)... is it not contradicting the first paragraph?

    "Wage bargaining

    Your employer's compulsory contributions must be on top of your regular pay.

    This means that if you have agreed to a total remuneration package, the compulsory employer contributions must be paid on top of that package.

    Your take-home pay should not be reduced because your employer is making a compulsory contribution.


    Through good faith bargaining, a salary package under an employment agreement can be negotiated whereby compulsory employer contributions can be offset against the employee's gross pay".

    Cheers

  2. #2
    Join Date
    Dec 2007
    Location
    Stanley Bay, Auckland, NZ
    Posts
    1,480

    Default

    Don't think that it is contradictory.

    What they are saying is that they can't pay you $50,000 and then, because you join Kiwisaver and start getting their contributions, change your salary to $49,000 because they are paying $1,000 in Kiwisaver.

    But what they can do is take into account the $1,000 when negotiating salaries and so negotiate to pay $49,000 rather than $50,000 in the first place.

  3. #3
    Join Date
    Jan 2007
    Location
    Chch, NZ
    Posts
    2,226

    Default

    I've always never been a fan of matching contributions by the employer. I find it's far more efficient for the gov't to directly offer the tax credit to the employee instead of involving the employer to make contributions and thus cause more paperwork for them. Higher accounting fees, it's bad enough to keep track with GST and PYE payments for each worker (ALL that is non-productive to the company).

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