Posted on: Apr 24, 2014
Court of Appeal confirms the Employment Court’s position
Employers can agree with employees that they will pay KiwiSaver contributions on a “total remuneration” approach whereby their wages are inclusive of the employer’s contribution.
However, there is an important exception to that rule, and that is when the gross wages after such contributions are made are less that the statutory minimum wage.
The Employment Court’s stance was unequivocally endorsed by the Court of Appeal in TerraNova Homes and Care Limited v Faitala and Goff (2013) 10 NZELC.
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