Example 1: Employee
A earns $52,000 a year and started contributing to the BCF Scheme on 1 July 2013 at the minimum contribution rate of 3% of pay (just under $30 a week). A’s employer contributes to the BCF Scheme for A’s benefit on the same basis. This example assumes ESCT is deducted from the employer’s contributions at the rate of 17.5%. This is what the contributions made to the BCF Scheme for A’s benefit could total after 3 years:
| Year | A’s contributions |
Compulsory employer contributions | Government contributions | Total |
| 1 | 1,560 | 1,287 | 521 | 3,368 |
| 2 | 1,560 | 1,287 | 521 | 3,368 |
| 3 | 1,560 | 1,287 | 521 | 3,368 |
| Total | 4,680 | 3,861 | 1,563 | 10,104 |
Example 2: Non-employee
B is not employed (i.e. not receiving salary or wages) and makes direct credit contributions to the BCF Scheme at the rate of $20 a week. This is what the contributions made to the BCF Scheme for B’s benefit could total after 3 years:
| Year | B’s contributions |
Compulsory employer contributions | Government contributions | Total |
| 1 | 1,043 | – | 521 | 1,564 |
| 2 | 1,043 | – | 521 | 1,564 |
| 3 | 1,043 | – | 521 | 1,564 |
| Total | 3,129 | – | 1,563 | 4,692 |
Important notes:
- Each table is based on the KiwiSaver legislation and Government policy applying as at August 2015. Legislation and policy are both subject to change.
- Conditions apply to receiving government contributions, and not all members will qualify. A and B are both assumed to be aged between 18 and 64 and continuously NZ resident.
- Each table shows only contributions (assuming no suspension of the member’s contributions). It does not take into account investment returns (positive or negative), fees, charges, or inflation.