Consumer NZ wants employers to pay KiwiSaver contributions on top of an employees' pay packet rather than being allowed to include it as part of a total remuneration package. 

Employers are obligated to contribute a minimum of 3 per cent of a workers' pay for those signed up and contributing themselves to KiwiSaver. 

But under the current law employees can agree for the employer contribution to come out of their pay package. 

Dr Cherie Lacie, Consumer New Zealand's lead investigative writer, said KiwiSaver was meant to help people save. 

"Allowing this loophole to continue means employees are left short-changed." 

Employers have previously argued that using total remuneration means all employees get the same benefits whether they are in KiwiSaver or not. 

But Lacie said the total remuneration clause effectively made an employee pay for their KiwiSaver contributions twice. 

The remuneration clause has been a controversial one for KiwiSaver from when it was launched in 2007. 

The Labour government briefly stopped it in 2008 but it was then reallowed when the National-led government came in and has remained that way since then. 

In its 2019 review of retirement income policy Te Ara Ahunga Ora Retirement Commission recommended phasing out KiwiSaver contributions as part of total remuneration packages. 

The Government is currently reviewing five of the 19 recommendations made by the commission including that of removing the total remuneration clause. 

But no timeframe has been publicly put on any decisions. 

The Retirement Commission is now in the process of undertaking its next three-yearly review of retirement income policies. 

Consumer NZ urge those negotiating pay for a new role to ask whether their pay includes the employer KiwiSaver contribution or if it will be made on top. 

"If you're unclear about how your current gross pay and total remuneration is made up, ask your employer to explain these to you to make sure you understand how your take-home pay is calculated. 

"Ensure that your weekly/fortnightly salary statement displays this information, including tax paid."