13 Jul 2008

KiwiSaver change not needed - Employers Assn

1:35 pm on 13 July 2008

The Employers and Manufacturers Association is critical of moves to allow employees to make a personal grievance claim if they're getting a bad deal under KiwiSaver.

The Government says a small number of employers are deducting 1% from employees' wages, while still taking a $20 tax credit.

It is planning an amendment to the Employment Relations Act as a result.

But the association says the Labour Minister has failed to give one example of an employer who has been deducting wages to pay its contribution.

It says changing the law is ridiculous.

From 1 April this year, employers started paying the equivalent of 1% of employees' salaries to KiwiSaver. That increases by 1% every year until 2011, when the total employer contribution is set at 4%.