ESCT is paid by employers on cash contributions to an employee’s superannuation scheme (generally Kiwisaver). ESCT is calculated on the basis of contributions made by the employer.
Payments made on behalf of the employee (as part of their elected kiwisaver contribution) are not subject to ESCT.
| Employee's income | ESCT rate |
|---|---|
| $0 to $16,800 | 10.5% |
| $16,801 to $57,600 | 17.5% |
| $57,601 to $84,000 | 30% |
| $84,001+ | 33% |
ESCT rates presented here were valid as of the time of writing but may be subject to change in the future.
ESCT Articles
Why Your Employer's Contributions Don't Match Your 3% Kiwisaver
To many employees it then comes as a shock to see their employer contributions consistently lower than expected on their kiwisaver statement. Why is that? There are two main reasons why the amounts received from your employer in your kiwisaver account don't match the amounts that have come from your salary contributions.