KiwiSaver and Lump Sum Payments

Q: The Teachers and Primary Teachers Collective Agreements settled with 3 lump sum payments, payable.

  • 2 were for union members
  • 1 was for the difference in salaries between what the teachers were awarded in their collective (settled first) and primary teachers.

I think these amounts make up Gross Pay, so KiwiSaver deduced and met by an employer contribution on all 3. I think the 2 union payments do not incur holiday pay, but the other might.

Can you please let me know if I am treating this correctly and your thoughts on the 3rd lump sum payment.


A: The three payments would all be part of KiwiSaver and the Holidays Act.

They are agreed payments from a CEA and are not discretionary (to be excluded from the gross for leave).

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