KiwiSaver contribution increase - an employer guide for 1 April 2026

17 Mar

From 1 April 2026: Minimum employer and employee contributions increase from 3% to 3.5%.
From 1 April 2028: Minimum employer and employee contributions increase again to 4%.
Employers already contributing above the minimum are not automatically affected (i.e. increases aren’t mandatory) but you may wish to review your contribution rates and/or superannuation benefits.

This is an employee-driven option but employers should make their employees aware of it and action any changes as per your employees’ request.

From 1 February 2026, employees can apply to the Inland Revenue to temporarily remain at the current 3% contribution rate.
The rate reduction is available for 3–12 months and employees can reapply multiple times (up to 12 months in total).
The rate reduction applies from the first pay period on or after 1 April 2026.
Employees must provide an IRD approval letter or request IRD notify the employer directly.
Employer contributions need to match the employee’s reduced rate while their rate reduction applies (3% minimum).

In case you haven’t seen these…

Government contribution reduced to 25 cents per $1 contributed.
Maximum annual government contribution reduced to $260.72.
Members earning over $180,000 per year are no longer eligible for the government contribution.
16–17 year olds are now eligible for the government contribution.

Budget for employer contribution increases (3% → 3.5% → 4%).
Prepare communications for your employees explaining the changes and impact on their take-home (net) pay.
Ensure your payroll system can process the new contribution rates and temporary reductions.
Check your employment agreements and any policies for KiwiSaver and update the wording if required.

Get in touch with your RYHR consultant or phone 06 213 7676 or email hello@robynyoung.co.nz.

Robyn Young

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