Employer Contributions Rates
The rate of contribution required to be made is the same for your employee and you calculated as a percentage of your employee’s gross earnings.
You the Employer and your Employees each contribute a percentage of gross earnings (before tax):
- 5% per year
Your employees may also make voluntary contributions. These may be made either as a lump sum amount for a minimum of $1000 or as a regular contribution of not less than 1% of their gross earnings. Voluntary contributions are paid into a Voluntary Account held in the employee’s name. Unlike the compulsory contributions set out above, they are not matched by you.
Your Employee Gross Earnings include:
- Holiday pay
- Long service leave pay
- Extra salary
- Directors fees
- Remuneration of any kind
Your Employee Gross Earnings DO NOT include:
- lump sum payments (other than accrued holiday pay) paid as a bonus gratuity or retiring allowance on termination of employment
- payments from a pension or annuity from past employment
- dividends (unless you are a shareholder employee)
- any amount earned as an employee from employment outside the Cook Islands from an employer who is not resident in and does not carry on business in the Cook Islands.