Upcoming KiwiSaver Changes from April 2026

KiwiSaver contribution rates are set to increase, and while the changes are gradual, they will directly impact both employees and employers from April 2026.

As part of Budget 2025, the Government has introduced updates aimed at encouraging higher retirement savings. The most notable change is a phased increase in default contribution rates from 3% to 4%.

Changes from 1 April 2026

From 1 April 2026, the default contribution rate will rise from 3% to 3.5% for both employees and employers.

If you are currently contributing at 3%, this increase will happen automatically through payroll. If you contribute more than 3%, your rate will remain unchanged, although employer contributions will increase to 3.5% where applicable.

Employees aged 16 and 17 will also begin receiving employer contributions, provided they meet eligibility requirements.

Temporary Rate Reduction

For those who prefer to stay at a 3% contribution rate, a temporary rate reduction is available.

This can be applied for a period of 3 to 12 months and can be renewed if needed. Applications can be made at any time, including back-to-back periods.

Employees with more than one employer can choose which employer the reduced rate applies to. The reduction can also be cancelled early by notifying the employer, although a new application will be required to use it again.

Applications opened on 1 February 2026, with changes taking effect from 1 April 2026. This option is not available to those with an active savings suspension.

What Employers Need to Do

Employers should ensure payroll systems are updated to reflect the new 3.5% contribution rate. They will also need to begin contributing for eligible 16 and 17-year-old employees and process any temporary rate reduction requests.

What's next:

From 1 April 2028, the default contribution rate will increase further to 4%.

Additional changes include government contributions for eligible 16 and 17-year-olds, while individuals earning over $180,000 annually will no longer qualify.

These updates are designed to gradually increase retirement savings. Understanding how they apply can help you plan ahead and manage contributions effectively.

If you're unsure about how these rules can benefit you, feel free to reach out to us. We would be happy to help!