In Budget 2025, the Government introduced several KiwiSaver changes to encourage Kiwis to save more for their first home and retirement.
The default rate of employee and matching employer KiwiSaver contributions will rise from 3% to 4% in two stages, with some changes coming into effect on 1 April 2026 and some on 1 April 2028. Some changes have already been made, which you can read more about at the bottom of the page.
1 April 2026 changes
If you’re an employee
If you’re contributing at the default rate of 3%, this will automatically rise to 3.5% for both your contribution and your employer’s.
Your employer will deduct 3.5% from 1 April (unless you apply for a temporary rate reduction). You do not need to do anything.
The new rate will affect all pay days from 1 April. So even if your pay period covers before and after 1 April, your whole contribution for that pay period will be deducted at the new rate.
If you’re contributing more than 3% already, your contributions will not change. However, if your employer is contributing 3%, this will rise to 3.5%.
If you’re aged 16 or 17
You’ll qualify for employer KiwiSaver contributions of 3.5% of your pay from 1 April 2026, so long as you meet other eligibility requirements.
Your employer will start making contributions automatically. You do not need to do anything.
Temporary rate reduction
A temporary rate reduction is available for people who want to carry on contributing at 3% from 1 April 2026.
You can apply for a temporary rate reduction for between 3 and 12 months. Your contributions will be reset to the default rate after 12 months. You can apply for the rate reduction as many times as you like.
Your employer can choose to match your temporary rate reduction. Once you move from the temporary rate to a higher rate, we’ll notify your employer.
If you’re an employer
You will need to:
- Ensure your payroll settings are updated to apply the default employee and employer contribution rates of 3.5%.
- Make employer contributions for your 16- and 17-year-old employees.
- Process any temporary rate reduction letters your employees give you.
1 April 2028 changes
The default KiwiSaver contribution rate will rise again to 4% (from 3.5%) for you and your employer.
Changes that have already taken effect
If you’re aged 16 or 17, you qualify for government contributions, so long as you meet other eligibility requirements.
From 1 July 2025, the government will contribute 25 cents for each dollar you contribute to KiwiSaver each year, with the maximum government contribution being $260.72.
If you earn more than $180,000 of taxable income a year, you do not qualify for the government contribution.