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Juggling two jobs and KiwiSaver
 
Q.           I have been working part-time for the past few years.  I opted out of KiwiSaver when I started my first part-time job.  I am now starting a second part-time job.  Can I join KiwiSaver for this job, and remain opted out for my first job?
 
A.         When you start your new job you will automatically be enrolled in KiwiSaver unless you opt out. Your new employer will start making deductions at 3%, 4% or 8% depending on what you choose, and will also contribute 3% as their employer contribution. Your employer’s contributions must be on top of your regular pay, so your take-home pay should not be reduced because of your employer contribution. An exception to this rule does through ‘good faith bargaining, where a salary package under an employment agreement can be negotiated whereby compulsory employer contributions can be offset against the employee’s gross pay. If this applies to you your new employer should have discussed it with you.
 
If you would like to make contributions through your first job as well you will need to fill in a KS2 form and give it to your employer. If you do nothing then you will continue to receive your usual pay without any KiwiSaver deductions from that job.
 
The situation would be different if someone was already contributing to KiwiSaver with their first job. If they started a second job, contributions would be deducted. If this didn’t leave enough to live on, they could take a contributions holiday on one job and not another, or on all jobs, as they wished. You can apply for a contributions holiday 12 months after joining KiwiSaver, or sooner if you are experiencing serious hardship.
 
One of the advantages of KiwiSaver is the annual top up that members get from the Government. These Member Tax Credits of up to $521 per year are given to all contributing members living in New Zealand and aged between 18 and when they become eligible to withdraw (usually age 65).   Anyone earning more than $34,700 per annum will be contributing enough to get the full top up. If you would like to get the full topup
 
 
Shelley Hanna is an Authorised Financial Adviser FSP12241. Her disclosure statement is available on request and free of charge by calling 870 3838 or go to www.peak.net.nz. The information contained in this article is of a general nature and is not personalised. Send your KiwiSaver questions to shelley.hanna@peak.net.nz