Q In a recent article you state that putting $20 per week entitles one to the full government top-up each July. This $20 weekly is no longer enough for the full top-up. I believe it is now just over $21 weekly. I know I had to top up with an extra payment to bring it up to enough to qualify.
A Well done on keeping track of your KiwiSaver contributions. Members under 65 and over 18 who contribute $1042.86 from July 1 to June 30 each year should qualify for the maximum $521.43 government contribution. Members who contribute less will still qualify for a top up equal to 50c in the dollar.
Members who are working fulltime and saving the minimum of 3 per cent should get the full contribution, so there is no need for them to top up their account. Those who work part-time, have not worked for a full year, are self-employed or not working need to calculate the top up required. Your provider can help with calculations. Timing is important — the date of contribution for employees is the date the money is deducted from their wages, not the date it reaches their provider. Inland Revenue keeps track of KiwiSaver contributions flowing from employers, and you can find your contribution total through your MyIR login.
I am guessing you are either self-employed or not working. Therefore all contributions to your KiwiSaver are coming directly from your bank account to your provider. The date they are processed by your provider is used to calculate the top up. There may be delays with weekends and public holidays.
As there are 52 weeks in the year, dividing $1042.86 by 52 comes to $20.05 per week. If you want the full top up, you need to contribute that amount for 52 weeks — and make sure your first payment reaches your provider after July 1 and the last before 30 June. For simplicity many people round down to $20 per week, giving them a top up from the government of $520 rather than $521.43.
