Default Rate Increase
On Wednesday, 1 April 2026, the default KiwiSaver rate will increase to 3.5% for both employee deductions and employer contributions.
- When it applies: The new rate is based on the paid date. Any pay run with a paid date on or after Wednesday, 1 April 2026 will use the 3.5% rate, regardless of when the work was performed.
Employee Rate Reductions
From Sunday, 1 February 2026, employees may apply to Inland Revenue for a temporary reduction to remain at 3% (valid for 3–12 months).
16 and 17 year olds
Employer contributions must now be extended to include employees aged 16 and 17. Employers will be required to review any employees aged 16 or 17 and provide them with the KiwiSaver form.
Most payroll software providers are making changes and updates to their systems to ensure these changes are applied. If you have any questions around this please contact your payroll software provider for further clarification.
Now is the time to:
- Update payroll systems if you need to
- Review documentation referencing KiwiSaver rates
- Ensure onboarding materials reflect the new minimum
- Check employment agreements are up to date as minimum wage also increases again on 1 April 2026.
