Government changes to KiwiSaver are being rolled out that affect contribution rates and the government contribution.
Here’s what members need to know.
From April 2026, a bit more of your pay goes into KiwiSaver
Starting from 1 April 2026, the minimum contribution rate increases from 3% to 3.5%. This applies to both employee and employer contributions, so a bit more goes into your KiwiSaver each payday – and your employer will be contributing more too.
A simple example
If you earn $70,000 a year:
- 3% = $2,100 a year into KiwiSaver
- 3.5% = $2,450 a year into KiwiSaver
That’s about $7 more per week from you, and about the same extra from your employer.
So, around $700 more in total, would go into your KiwiSaver each year.
(Actual amounts will vary depending on pay cycles and payroll calculations.)
The minimum contribution rate is scheduled to increase again to 4% from 1 April 2028.
You don’t need to do anything
These increased contribution rate applies automatically if you are on the default rate. You can choose to contribute a higher rate of 4%, 6%, 8% or 10% if you would prefer.
If a higher contribution rate doesn’t suit your budget right now, you can apply to temporarily stay at the lower rate. A temporary rate reduction lasts between 3 and 12 months so you can balance short-term needs with long-term savings.
If approved, you’ll need to provide your certificate to your employer so payroll can apply the lower rate. Read more on the IRD website.
Government KiwiSaver contributions have reduced
The government contribution is still a valuable boost to your savings, but it’s lower than previous years. From 1 July 2025, the annual government contribution to eligible members reduced from 50c to 25c for every $1 you contribute, with a new maximum of $260.72 per year.
- To receive the maximum, you will still need to contribute a minimum of $1,042.86 each year. That works out to just $20.06 a week - or you can make a one-off top-up before 30 June.
- Members earning more than $180,000 per year are no longer eligible for the government contribution.
- These settings apply from the 2025/26 contribution year onward.
Younger workers now get employer contributions
If you’re 16 or 17 and contributing to KiwiSaver through work, you’ll soon be eligible to receive employer contributions too - helping you build savings earlier in your career.
- Eligible 16 and 17-year-olds became entitled to government contributions from 1 July 2025.
- From 1 April 2026, eligible 16 and 17-year-olds will receive employer contributions when contributing through wages.
What’s not changing
KiwiSaver withdrawal rules remain the same. KiwiSaver can still be used to help you buy your first home or support you in retirement.
What actions can you take:
- Review your contribution rate
While the default rate is increasing to 3.5% you can choose to contribute more. Even small increases can make a big difference over time as future returns are calculated on a larger balance - not just what you originally put in. - Maximise your KiwiSaver through government contributions
If eligible, make sure you’re contributing enough each year to receive the government contribution you’re entitled to. - We are here to help
If you have any questions or need some help, get in touch by calling us on 0800 27 87 37 or contact us.
