Employers including KiwiSaver as part of pay packets instead of on top

The Retirement Commission surveyed more than 300 small, medium, and large organisations about the use of a total remuneration approach to KiwiSaver, finding that 45% use the model for at least some employees.  

The findings show that 25% of employers include employer KiwiSaver contributions as part of total remuneration. A further 20% adopt both approaches, paying some employees earnings plus KiwiSaver, and paying others earnings inclusive of KiwiSaver.

Of the employers which use a total remuneration approach, 66% said it was because the accounting is more simple, 42% because they use contract and casual employees/it is not required, 37% said for transparency, and 21% said because it is cheaper for business. 

Those using a mixed approach gave transparency as the main reason (42%), use of casual and contract employees/not required (40%), and fairness (34%).