The Government will consider a law change to stop employers ripping off workers who have joined the KiwiSaver scheme, Labour Minister Trevor Mallard said today.

It has been revealed that some companies have found a loophole and are reducing pay rises by 1 percent to cover the contribution employers have to make to KiwiSaver accounts.

But the Government compensates for the 1 percent through a tax credit worth $20 a week to employers, enough to cover their contributions on salaries up to $104,000.