KiwiSaver Opt Out And Savings Suspension

How do I opt out of KiwiSaver?

Inland Revenue: if you were automatically enrolled by your employer and you do not want to be a member, you can opt out. You cannot opt out in the first 13 days. You can opt out on or after day 14 and on or before day 56 of starting work. Use a KS10 opt out request. Every time you start new employment as a non member, you will need to opt out again. KS2 rates and other brakes sit on the KiwiSaver hub. This page stays on opt out versus a savings suspension.

The KiwiSaver Act 2006, section 16, sets the same window as the 13th day after you started through to the close of the 55th day after you started. That is Inland Revenue’s day 14 to day 56 in ordinary counting. Give the notice to the employer for that job, or to Inland Revenue. If you give KS10 to the employer inside days 14 to 56, the employer can stop deductions and compulsory employer contributions from the next pay, and must send the form to Inland Revenue.

People who opted in cannot opt out later. If you joined directly with a provider you cannot opt out, but you might take a savings suspension. If someone eligible for New Zealand Super hands you a KS10, Inland Revenue tells employers to use a KS51 non deduction notice instead.

What if I miss day 56?

Inland Revenue may accept a late opt out after 8 weeks (from day 57) and up to 3 months after it received your first contribution, only if one of these applies: no KS3 employee information pack within 7 days of starting; Inland Revenue did not send a product disclosure statement for the default scheme it allocated; the employer did not give a product disclosure statement for an employer chosen scheme; events outside your control stopped you delivering the notice on time; or you should not have been automatically enrolled. The Act, section 18, uses a 92 day period after the first contribution instead of the words “3 months”. Follow Inland Revenue’s listed reasons, then ask Inland Revenue which clock it is using for your file.

For a late request, keep deducting until Inland Revenue says stop. Refunds of member contributions already sent to Inland Revenue come from Inland Revenue, not a second refund from payroll. Inland Revenue: it generally takes 30 working days to process a refund.

Sources: Inland Revenue opting out of KiwiSaver (28 May 2025), taking a savings break, and the temporary 3% reduction pages.

You cannot hold a temporary 3% reduction and a savings suspension together. That split is on Temporary 3% KiwiSaver reduction.

What is a contributions holiday now?

A savings suspension. The Act repealed the old contributions holiday name on 1 April 2019. Inland Revenue’s live pages say savings suspension, or taking a savings break. business.govt.nz still says “savings holiday” in one enrolment step. Use the Inland Revenue name on the notice you show an employer.

If you have contributed and been a member for 12 months or more, you can have a savings suspension for 3 months to 1 year. You do not need a reason. You can have as many as you want, including back to back. The Act, section 104, grants a standard suspension for a minimum of 92 days and a maximum of 1 year. Inland Revenue’s public page uses 3 months to 1 year. Apply in myIR. The suspension begins on the date Inland Revenue approves it. Show the notice to your employer. Inland Revenue also posts a copy if you gave employer details.

While you are on a savings suspension you will not get employer contributions unless the employment agreement says otherwise. If you want the government contribution you may need to make voluntary payments. Those $260.72 rules sit on KiwiSaver government contribution $260.72 rules. You can start or stop contributions during a suspension by talking to the employer, but if the change is within 3 months of the last change the employer needs to agree. The Act, section 108, says no savings suspension may be used for an employer for less than 92 days unless the employer agrees.

If you have been in KiwiSaver less than a year you can apply for an early savings suspension if you have made a contribution and you are experiencing, or likely to experience, financial hardship. Inland Revenue wants evidence of hardship for reasons outside your control. The default period is 3 months. The Act grants 92 days unless Inland Revenue agrees to longer, up to 1 year.

Changing jobs does not reopen opt out if you are already a member. Inland Revenue: show the savings suspension notice to the new employer. If you cannot find it, deductions are required until a replacement letter arrives. Those deductions are not refunded automatically. You have to ask Inland Revenue. business.govt.nz: once someone is in KiwiSaver, keep deducting unless Inland Revenue or a valid suspension or KS51 notice says stop.

Pull highlight: do not refund KiwiSaver deductions you have already paid to Inland Revenue. Inland Revenue will refund the employee. A second payroll refund means they are paid twice.

What about under 18, and refunds?

Inland Revenue’s under 19 notes: you may be able to opt out if the employer enrolled you before 18, if you were enrolled without guardian consent, or if you are under 16 and your guardian agrees. You may not be able to opt out if you contacted a provider and chose a scheme, if guardians signed you up or consented, or if you opted in after you turned 18. KS10 still covers a minor who was incorrectly enrolled.

Employer CECs already paid are refunded by Inland Revenue if nothing is owing. Ask for an ESCT refund on IR344 employment information amendments, or contact Inland Revenue. That payroll path is on Employer KiwiSaver cost and ESCT.

What people get stuck on

PersonalFinanceNZ and r/newzealand threads treat a new job as a fresh chance to leave KiwiSaver for life. Inland Revenue’s “opt out again at every new job” line is for people who are being auto enrolled because they are not members. If you are already in, the new employer deducts. The brake is a savings suspension, shown as a notice, not a second KS10.

Geekzone payroll threads ask why the first pay still had KiwiSaver after a KS10. Inland Revenue: if the employer has already paid the schedule, Inland Revenue refunds the member. Payroll must not refund that same amount again. Late opt outs keep deducting until Inland Revenue approves.

Forum posts still quote a 50 cent government credit on a savings suspension. Follow Inland Revenue today: 25 cents, maximum $260.72, and only on your own money. A suspension does not invent a credit with no money in.

Frequently asked questions