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Employees are paid their KiwiSaver contributions through their employers, however self-employed individuals have to do things a little differently. If you are self-employed, you agree to your contribution level with your provider instead of contributing a percentage of your pay.
Self-employed individuals who do not receive PAYE income will not be required to make any contributions to their KiwiSaver account, but will be able to make voluntary contributions whenever they wish. Some providers may require a minimum contribution amount.
Those who are self-employed but have their income subject to PAYE deductions will still be considered as employees for the purposes of KiwiSaver. In this case, the KiwiSaver contributions minimum of 3% will continue to be deducted from their wages. They will also need to make the minimum employer’s contribution of 3%.
In the event that a self-employed individual starts working as an employee, they will need to inform their employer that they are part of KiwiSaver in order for contributions to be deducted from their wages. They will be able to choose whether to contribute 3%, 4%, 6%, 8% or 10% from their earnings. As well as this, they may be able to receive employer contributions if they meet the eligibility criteria.
Self-employed individuals can join KiwiSaver by choosing a scheme provider and applying directly to them. The scheme provider will then notify the IRD that you have joined KiwiSaver. To be eligible to join KiwiSaver, you must be a New Zealand citizen and normally live in New Zealand or be entitled to stay in New Zealand indefinitely.