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Employers campaign against KiwiSaver rights - CTU


Employers campaign against KiwiSaver rights miserable

The CTU has slammed the Northern Employers and Manufacturers Association’s campaign to stop an amendment to the law that will ensure workers get their fair share of KiwiSaver entitlements. In a very small number of cases employers are making workers pay both their own and the employer’s contributions out of their pay.

“EMA Northern is being miserable - KiwiSaver employer contributions are a new entitlement for workers, and not something their employer should avoid,” CTU president Helen Kelly said.

“For the first few years, the employers of many workers will have their compulsory contributions fully covered by the employer tax credit.”

“Each year employer contributions are offset by a $20 a week employer tax credit. This equates to 1% for someone on $104,000 and 4% for someone on $26,000 a year.”

“Those exploiting this loophole are pocketing government money meant for workers savings. It is unlikely any decent employers will support this type of behaviour.”

“The EMA risk losing all credibility given over 700,000 workers have joined KiwiSaver already, and most employers have paid the employer contribution and will reclaim it from the Government.”

Ends.


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