KiwiSaver Changes

There are changes to KiwiSaver, which employers need to be aware of. These changes are happening at different times - you’ll need to ensure your payroll system is up to date, and let your people know how the changes might affect them.

1 July 2025

  • People aged 16 and 17 qualify for government contributions, if they meet other eligibility requirements (prior to 1 July 2025 people had to be 18 years or older to qualify). Note that this does not include employer contributions at this stage.

  • The government KiwiSaver contribution halves to a maximum of $260.72 each year (prior to 1 July 2025 the maximum government contribution was $521.43).

  • People who earn more than $180,000 of taxable income in a year no longer qualify for government contributions (note, this does not impact employer contributions).

  • There’s no change to government contributions for the year ending 30 June 2025. These will be paid in July/August at the current government contribution rate.

 1 April 2026

  • The default KiwiSaver contribution rate for employers and employees will rise to 3.5% (prior to 1 April 2026 the rate is 3%).

  • Employees will be able to apply for a temporary rate reduction from 1 February 2026, should they wish to continue contributing at 3% from 1 April 2026. The temporary rate reduction is for a maximum of 12 months, and instructions on how to apply will be released by Inland Revenue in early 2026.

  • Employers can choose to match the employee’s temporary rate reduction. However, once the employee moves to a higher contribution rate, employers will need to increase the employer contributions to the default 3.5% rate. Inland Revenue will notify employers of this.

  • People aged 16 and 17 will qualify for employer contributions. If they contribute to KiwiSaver from their wages, employers will need to start making employer contributions.

 1 April 2028

  •  The default contribution rates for employers and employees will rise to 4%. More information about this change will be released by Inland Revenue closer to the time. 

If you have any questions about these changes and how it might impact your organisation, please get in touch with one of the team.

This information is general guidance only, and you should not solely rely on this information; specific advice should be sought for your situation.