19 May 2011

KiwiSaver changes 'will not please employers'

10:11 pm on 19 May 2011

Financial columist and author Mary Holm says employers will not like the Government's changes to the KiwiSaver scheme.

Government contributions to the voluntary workplace savings scheme will be halved, to a maximum of $521 a year, beginning in June 2012.

Employer contributions will no longer be tax free, as of April 2012.

Both employers and workers will have to boost their minimum contributions from 2% to 3% by the following year.

Ms Holm says employers are getting sick of the constant changes to KiwiSaver and the subsequent need to alter their own payroll systems.

However she says they have until April 2013 to absorb additional costs, and many will do so by giving staff smaller pay rises.