Stay up to date on how recent KiwiSaver updates may impact your business.

New KiwiSaver changes are coming into effect, and employers will need to make a few adjustments to stay compliant. Some changes have already taken effect from 1 July 2025, with further updates starting 1 April 2026 and 1 April 2028.

Here’s what you need to know.

Changes starting 1 April 2026:

• Default employer and employee contribution rates are increasing.
  • The default KiwiSaver contribution rate will increase from 3% to 3.5% for both employees and employers.
  • This applies to all paydays from 1 April 2026. Even if a pay period includes days before and after 1 April, the entire KiwiSaver contribution for that pay period must be calculated at the new 3.5% rate.

• Temporary rate reduction
  • Employees can apply for a temporary rate reduction from 1 February 2026 if they wish to continue contributing at 3% from 1 April 2026.
  • Employers have the option to match the employee’s temporary reduced rate (up to 12 months). If the employee later moves back to a higher contribution rate, IRD will notify the employer.

Changes starting 1 April 2028

• The default KiwiSaver contribution rate will rise again to 4% (from 3.5%) for the individual and the employer.

Things to note for your business to stay compliant:

• If paying manually, you will need to update manual payroll calculations to reflect the new contribution rate.
• Check your payroll system settings to confirm they automatically update to the new rates. 
• Check in with your employees to make sure they understand the changes and know their contribution will automatically increase to 3.5% unless they apply for a temporary rate reduction.

Keeping up with regulatory changes like these helps ensure your business remains compliant and your employees stay informed.

If you have any questions about how these changes may affect your payroll or obligations as an employer, our team is here to help.