From 1 February, KiwiSaver members will be able to apply for a temporary KiwiSaver rate reduction if they need to. This is ahead of the changes to the minimum KiwiSaver contribution rate, which will be increasing on 1 April 2026.
Rate reductions for employees (members)
KiwiSaver members can apply for a temporary rate reduction in myIR from 1 February. However, this will not apply until their first payday on or after 1 April 2026.
They’ll need to show their employer the certificate confirming their KiwiSaver rate reduction.
Members may choose to apply for the rate reduction if they’re unable to afford the rate increase or they want to save in other ways.
They will not be eligible for a temporary rate reduction if they currently have an active KiwiSaver savings suspension.
Rate reductions for employers
Employers must reduce their employee’s KiwiSaver rate if:
- the employee provides a certificate indicating the period they have an active rate reduction for
- we send the employer a letter letting them know their employee has a rate reduction and the period they have it for.
Employers can reduce their contribution to match the employee’s reduced rate once their reduced rate takes effect. However, when an employee moves to a higher contribution rate, the employer must also increase their employer contributions to match the compulsory 3.5% rate, or higher if they choose.
A temporary rate reduction can only take effect from 1 April 2026, even if the employer has received notification about it before this date.
Employers must end the employee’s temporary rate reduction if their employee gives them a KS2 form to change their contribution rate.
If an employee wants to reduce their contribution rate below the minimum again, they’ll need to provide a new certificate.