KiwiSaver Changes from 1 April 2026

Minimum contributions from both Employees and Employers will be increasing from 3% to 3.5%, with a further increase to 4% already legislated for 1 April 2028.

Additionally, access to KiwiSaver employer and government contributions will become eligible to 16-17-year-olds, giving young people the tools to start saving for their future early.

Those facing financial difficulties will be able to apply for a temporary rate reduction from 1 February 2026, allowing them to remain at 3% contributions from the April deadline. The employer may choose to match the reduce rate, this excludes those who currently have an active KiwiSaver savings suspension.

For employees, this means a lower take home pay as a higher percentage of gross earning are diverted to KiwiSaver. For example, a salary of $60,000 per annum will result in $300 less take-home pay per year. The benefit, however, is higher long-term retirement savings. For the same employee, their KiwiSaver will increase by an additional $600 per year due to increased Employee and Employer contributions. When compounded over years and decades, along with investment returns, the hope is everyday Kiwis will have better retirement savings.

For Employers, this means higher employment costs, having to match the increased 3.5% minimum rate. Those with a large workforce will be most affected by this change. This may affect Employer decision making when making future pay reviews and looking at remuneration structures.

The wider impact of the policy is to reduce future reliance on NZ Super, lift national saving rates, and improve financial resilience in retirement.