4 Sep 2008

Employers criticise KiwiSaver changes

5:56 am on 4 September 2008

Some employer groups are angry about changes to KiwiSaver which were rushed through Parliament on Wednesday.

The Northern Employers and Manufacturers Association, the Otago and Southland Employers Association and Business New Zealand, think the changes will bring inequalities into the workforce.

The law change was intended to prevent companies pocketing tax advantages from KiwiSaver while denying money to their staff.

The Government says it simply restores the position to what was intended.

But critics say the real effect will be that people who have signed up for KiwiSaver are paid more than people who have not.

They say they were denied the chance to have input via select committee scrutiny because the change was passed under urgency.