The short version
- Default employee and employer rates rose to 3.5% on 1 April 2026
- Pay dates from 1 April use 3.5% for the whole pay period
- Employees can apply for a temporary 3% rate for 3 to 12 months
- Employer contributions now extend to eligible 16 and 17 year olds
- The default rate is scheduled to rise to 4% on 1 April 2028
Check your payroll settings
Make sure the 3.5% default applied from the first pay date on or after 1 April 2026. The rate follows the pay date, so a pay run on 2 April covering late March work is deducted at 3.5% in full.
Temporary 3% rates
Since 1 February 2026 employees have been able to ask Inland Revenue to keep contributing at 3% for between 3 and 12 months. IRD tells you when a staff member has a temporary rate. As the employer you can choose whether to match it or keep contributing 3.5%.
Younger staff
From 1 April 2026 employer contributions also apply to eligible employees aged 16 and 17. Check anyone in that age group who is a KiwiSaver member.
Total remuneration packages
If your employment agreements include KiwiSaver within a total package, the higher rate changes take-home pay. Check how your agreements are worded before you change anything.
The government contribution
Since 1 July 2025 the government contributes 25 cents for every dollar a member contributes, up to $260.72 a year, and nothing for members earning more than $180,000.
General information only. Talk to us about your own situation before acting on it.
