KiwiSaver calculator
What a workplace retirement balance becomes, counting employee, employer and any government contribution.
Projected after 25 years
Estimate$406,686
4,596 a year going in from all three sources
- Your contribution
- $2,550.00
- Employer, after ESCT
- $1,785.00
- Government contribution
- $261.00
| Salary | $85,000 |
|---|---|
| You contribute 3% | $2,550.00 |
| Employer contributes 3% | $2,550.00 |
| ESCT at 30.0% | -$765.00 |
| Government contribution | $261.00 |
| Total into your account each year | $4,596.00 |
- You are receiving the full $260.72 government contribution — contributing more does not increase it.
- ESCT at 30.0% is deducted from the employer contribution before it reaches you, so "3% employer" is never 3% in your balance.
On $85,000 at 3% you contribute $2,550, the employer adds $2,550 gross — roughly $1,760 after tax — and the government adds up to $260.72.
How this is calculated
How this is calculated
Employer contributions are not always tax-free
New Zealand taxes the compulsory 3% employer contribution at an ESCT rate of 10.5% to 39% before it lands, so roughly $1,760 of a $2,550 contribution arrives.
annual = employee + employer × (1 − ESCT) + governmentGovernment top-ups cap quickly
New Zealand pays 25c per dollar to a $260.72 annual maximum, reached at about $1,043 of your own contributions. Beyond that the incentive stops entirely.
The tax on the employer share rises with income
ESCT follows its own threshold table running from 10.5% to 39%, so a higher salary means a bigger gross employer contribution but a smaller proportion of it reaching your balance.
Worked example: $85,000 salary at 3% with a $45,000 balance
| Salary | $85,000 |
|---|---|
| Your rate | 3% |
| Balance | $45,000 |
| You add | $2,550 |
|---|---|
| Employer, net | about $1,760 |
Scheme rules differ by country. Pick a country above for the contribution structure that applies to you.
What this assumes
- Continuous employment at this salary.
- A constant return after fees.
- Regular contributions with no lump sums.
- Eligible for any government top-up.
Where this commonly goes wrong
- Pausing contributions usually stops the employer and government contributions too, so the real cost is a multiple of what you stop paying.
- Government top-ups often run on their own year rather than the tax year, which is easy to miss when starting mid-year.
- Default funds tend to be conservative, and over decades the fund choice frequently matters more than the contribution rate.
Questions
How much should I contribute to a workplace scheme?
Enough to capture every match on offer. In New Zealand that means 3% to secure the employer contribution and about $1,043 a year for the full $260.72 government contribution.
Does the employer contribution arrive in full?
Not in New Zealand. Employer superannuation contribution tax of 10.5% to 39% is deducted before it lands, so roughly $1,760 of a $2,550 employer contribution actually reaches your account balance.
What does pausing contributions really cost?
More than you stop paying. Pausing typically halts the employer and government contributions as well, so stopping $2,550 can cost around $4,570 of total annual saving.
Related tools
Sources
General estimate based on published Inland Revenue rates for the current period. Not tax advice. Confirm your position with IR or a qualified adviser.
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