5 key KiwiSaver changes for business owners.
Back in May, Budget 2025 introduced some new changes to KiwiSaver. Some of these changes will likely affect the employer contributions you make, so it’s important you’re up to date.
Here are our 5 key KiwiSaver details from Budget 2025 that business owners need to know!
1. Employer and employee contribution rates are increasing
The minimum rate will rise from 3% to 4% of salary and wages in two steps. From April 1 2026 the rate will rise to 3.5% and then again from April 1 2028, to 4%.
2. Employees have the ability to opt out for a temporary rate reduction
If they choose, your employees can temporarily opt down to the current 3% rate for a 3-12 month period and still be matched by their employer.
3. Extending eligibility for 16 and 17-year-olds to receive employer and government contributions
The Government will extend their KiwiSaver contribution to 16 and 17-year-olds from 1 July 2025, with eligibility for employer matching extended from 1 April 2026.
4. Reducing the government contribution to Kiwisaver for all members
From July 1 2025, the annual government contribution will be halved to 25 cents for each dollar a member contributes each year, up to a maximum of $260.72.
5. Removing the government contribution for those earning over $180,000 a year
From July 1 2025, those earning over 180,000 a year will no longer receive the government contribution.
These changes being phased in gives us the chance to look forward and plan with you, so talk to us today and get ahead of any increases that may impact you and your business!
Need help with the upcoming KiwiSaver changes? Feel free to get in touch with our team – details below.
