KiwiSaver contribution changes from 1 April 2026 - what employers need to know

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

Employees who wish to stay at 3% can apply to the Inland Revenue Department for a temporary rate reduction from 1 February 2026. If this is approved, the employer can continue matching their reduced rate of 3%. Once the employee moves back to the higher contribution, you’ll need to increase your employer contribution to 3.5%. The IRD will notify you when this change occurs.

There’s also an important change for younger workers. Employees aged 16 and 17 will now qualify for employer KiwiSaver contributions. If they contribute from their wages, you’ll be required to contribute as well.

If you’d like support understanding your employer obligations, preparing for the KiwiSaver changes, or advising employees — particularly those on total or inclusive remuneration packages — Knowhow can help.