Summary
The New Zealand Social Security System is a Universal Social Assistance programme which provides superannuation and other benefits based on residence criteria.
Details
Contributions
All New Zealand retirement and social assistance benefits are paid out of general taxation. There are no employee or employer social security contributions.
Treaties
New Zealand has social security agreements with the UK and a number of other Commonwealth countries (Canada, Australia, Malta), but only a few countries in Europe and Asia. These treaties ensure benefit entitlements only – they do not deal with social security contributions.
Administration
As New Zealand social security is centrally funded from general taxation, there are no social security related administrative burdens on employers.
Benefits
The core benefits of the New Zealand Social Security system are the Universal Old Age Pension, means tested old age assistance benefits, disability and survivors allowances and various other grants and supplements. Entitlement to the Universal Old Age Pension is currently based the individual having lived in NZ for 10 continuous years since the age of 20, and at least five years after the age of 50.
Other
Local Employment in New Zealand (rather than expatriation) can, as a result of breaking an individual’s ties with their home country employment, remove home and host employer and employee social security liabilities completely, while still, under NZ’s non-contributory system, entitling the individual to a degree of social protection and benefits.
Social security insights are intended to provide quick and straightforward insights into social security regimes. Always seek professional advice based on actual circumstances before acting.
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