KiwiSaver Contribution Changes – Effective 1 April 2026

From 1 April 2026, the default KiwiSaver contribution rate for both employers and employees will increase from 3% to 3.5%.

This means:

1. Employees will contribute 3.5% of their gross pay.

2. Employers must contribute 3.5% on top of the employee’s salary or hourly wage.

Temporary Rate Reduction Option

Employees who wish to continue contributing at 3% from 1 April 2026 can apply to Inland Revenue for a temporary rate reduction.

Applications open from 1 February 2026, and the reduced rate will apply for a 3-month period (92 days).

For full details, visit the Inland Revenue Department website:https://www.ird.govt.nz/kiwisaver-changes

Voluntary Higher Contributions

Employees may choose to contribute at a higher rate if they wish to grow their KiwiSaver savings faster.

As an employer, you may choose to:

1. Match an employee’s higher contribution rate

2. Offer a higher employer contribution rate as an additional benefit (with no obligation for the employee to increase theirs)

3. Remain at the default contribution rate of 3.5%

Looking Ahead – 1 April 2028

From 1 April 2028, the default KiwiSaver contribution rate will increase again from 3.5% to 4% for both employers and employees.

If you have any questions, drop me an email debbie@mobile-bookkeeping.co.nz