Kiwisaver and Student Loan changes from 1 April 2013 2


Do you have Kiwisaver or a Student Loan?

If you do, you will notice a difference in your pay packet from 1 April 2013 as the minimum Kiwisaver contribution increases from 2% to 3%.  Employer contributions also increase to 3%.

If you are already contributing more than 3% to your Kiwisaver then you won’t notice any difference.

Also on 1 April 2013, Student Loan repayments are increasing from 10% to 12% of anything you earn over the annual $19084 threshold.

I’ve included a comparison chart below to show you the potential difference in your pay depending on how much you earn.   If you want to enter your own personal details (e.g. any special tax credits you get) into the PAYE calculator, you can find it here on the Inland Revenue Department’s website.

 

Year Ending 31/03/2013
Annual Salary

$30,000

$40,000

$50,000

$60,000

Weekly Pay

$576.92

$769.23

$961.54

$1,153.85

PAYE (Tax & ACC)

$91.91

$128.84

$170.57

$231.53

Kiwisaver (2%)

$11.53

$15.38

$19.23

$23.07

Student Loan (10%)

$20.90

$40.20

$59.40

$78.60

Net Salary

$452.58

$584.81

$712.34

$820.65

Year Ending 31/03/2014
Annual Salary

$30,000

$40,000

$50,000

$60,000

Weekly Pay

$576.92

$769.23

$961.54

$1,153.85

PAYE (Tax & ACC)

$91.91

$128.84

$170.57

$231.53

Kiwisaver (3%)

$17.30

$23.07

$28.84

$34.61

Student Loan (12%)

$25.08

$48.24

$71.28

$94.32

Net Salary

$442.63

$569.08

$690.85

$793.39

Difference in Net Pay

$9.95

$15.73

$21.49

$27.26


Leave a comment

Your email address will not be published. Required fields are marked *

2 thoughts on “Kiwisaver and Student Loan changes from 1 April 2013

  • David

    If the employer counts their contribution as part of the employees wage / salary, then the minimum contribution for the employee will now be 6%.

    As an aside, I have no problem with employers including their contributions (essentially an additional tax) as part of an employees remuneration package. If they don’t do this, it doubly disadvantages those not in KS in that they get paid less and end up paying for these contributions in higher prices at the shop.

    • admin Post author

      Good points David. I believe it will become more common for employers to include KS contributions as part of overall remuneration. It’s only fair after all.