How to make KiwiSaver employer contributions for unpaid parental leave
Data from the Retirement Commission reveals that the average KiwiSaver balance for women is 25% lower than that of men, with the gap widening as individuals age. One contributing factor to this disparity is the interruption of retirement savings during periods of parental leave, where employer contributions often cease, leading to a substantial shortfall over time.
More New Zealand employers recognise their opportunity to tackle the KiwiSaver gender gap and make voluntary contributions for unpaid parental leave.
The challenge for employers
28% of organisations on The New Zealand Parental Leave Register already make KiwiSaver employer contributions equivalent to what an employee would have received for up to a year of parental leave. However, employers have shared that calculating and making these voluntary contributions is cumbersome and manual, creating administrative challenges and potential inaccuracies.
Crayon's solution: the KiwiSaver Employer Contribution Calculator
To address this issue, Crayon has developed the Parental Leave KiwiSaver Employer Contribution Calculator, a tool designed to simplify the process for employers wishing to make voluntary KiwiSaver contributions during an employee's parental leave. Key features include:
Flexible calculations: Employers can choose whether to include or exclude government contributions made during government-paid parental leave.
Accurate deductions: The tool automatically deducts any contributions the employer will already be making during employer-paid parental leave, ensuring that the additional voluntary contribution is appropriate.
Show the value: The tool calculates how much the employer contribution could be worth in 30 years so employers can effectively communicate the value of the voluntary contribution to employees.
Call to action: share your feedback
Crayon is committed to continuous improvement and values the insights of employers and HR professionals. We invite you to explore the KiwiSaver Employer Contribution Calculator and share your experiences. Your feedback is crucial in refining this tool to better serve the needs of both employers and employees.
We are also in dialogue with the Retirement Commission about their KiwiSaver review and the potential recommendations they could put forward to make it easier for employers to make voluntary KiwiSaver contributions when an employee is not earning an income.
How do you currently manage KiwiSaver contributions during parental leave? What challenges have you faced, and how can tools like this calculator assist you? Join the discussion and help us drive positive change in workplace benefits and financial well-being.
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Now for the important legal part: The information we provide is general and not regulated financial advice for the purposes of the Financial Markets Conduct Act 2013. Please seek independent legal, financial, tax or other advice in considering whether the content in this article is appropriate for your goals, situation or needs. The information in this article is current as at 1 April 2025.
Stephanie Pow
Founder & CEO of Crayon
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