KiwiSaver on termination

Question:

Please can you advise if KiwiSaver is deducted and paid, by employers, on redundancy (severance) payments?

Answer:

Redundancy is not a salary or wage payment it is compensation and for that reason KiwiSaver is not deducted.  It does still need to be taxed at a lump sum rate without the earner levy deducted.

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