Hi Does any one else have a KiwiSaver inclusive wage/salary package for their employees?
Currently the 3% KiwiSaver is included in their total rem rate but with the new legislation coming in, this will drop the employee's take home pay because more of their and the employee contribution will go directly to KiwiSaver . How are you handling this please?
We made a business decision to leave the base salary as is, and increase the employer KS - effectively increasing the Fixed REM. However when we were going to leave the fixed REM as is, then we planned clear comms to the employees, documenting that we have to make the change but then we detailed the IRD's opt out option so they could stay at 3%. This made the change the employees choice rather then the business decreasing their pay. (Also ensure your employee agreements are legally solid on this matter).
