The tax rate on the employer contributions of your Kiwisaver are taxed at a rate based on your total income, but this seems like people at the lower end of one salary bracket get less Kiwisaver than people at the higher end of the previous bracket.
Employee Contributions @ 3% $1710
Gross Employer Contributions @ 3% $1710
ESCT Tax rate 17.5%
Net Employer Contributions $1410.75
TOTAL Contributions $3120.75
Employee Contributions @ 3% $1740
Gross Employer Contributions @ 3% $1740
ESCT Tax rate 30%
Net Employer Contributions $1218.00
TOTAL Contributions $2958.00
Is this how it works? If so it seems very unfair for the higher tax rate to apply to the entire employer contribution.