How to calculate the ESCT rate for an Employee
- Mar 14, 2022
- 2 min read
Updated: May 2, 2025
ESCT (Employer superannuation contribution tax) is the tax paid on cash contributions to an employee’s Super scheme.
For KiwiSaver, this means you pay ESCT on the employers contribution. The employers contribution is from 3%.
Employers don't need to pay ESCT if the employee and employers agree that the employers contribution is in their salary/wages. This must be stated in the employee's contract.
The ESCT rate needs to be updated in your Payroll at the beginning of each tax year - not part way through. Some Payroll systems do this automactically such as iPayroll and PayHero. If you are a Xero Payroll user you will need to update this manually.
How to work out the correct ESCT rate for an employee
If the employee has worked a full year with your business:
The ESCT rate calculation is based on their total salary received from the business, plus the total Employer superannuation contribution before ESCT was deducted.
Have worked a part year with your business:
The ESCT rate will be based on the estimate of salary for the upcoming tax year plus an estimate of the Employer superannuation contribution before ESCT was deducted.
What if my employee has a secondary job?
You don't need to know how much they earn with their other jobs. Each employer works out the employee's ESCT rate based on what they earn for that job.
Employee's Income for the year ended 31 March 2026 (including gross cash contributions)
ESCT Rate
$1 to $18,720 | 10.5% |
$18,721 to $64,200 | 17.5% |
$64,201 to $93,720 | 30% |
$93,721- $216,000 | 33% |
$216,001 + | 39% |
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