KiwiSaver Changes from 1 April 2026

Some KiwiSaver rules are changing in April 2026. Here’s the rundown.

Contribution rates are going up

The default rate increases from 3% to 3.5% for employees and employers alike.

Date	Employee	Employer
Now	3%	3%
1 April 2026	3.5%	3.5%
1 April 2028	4%	4%

You’ll see a bit less in your pay packet, and employers will pay a bit more. On the plus side, more goes into your retirement savings—and that compounds over time.

You can stay at 3% if you need to

If the bump isn’t doable right now, you can apply through myIR from 1 February 2026 to temporarily stick with 3%. It lasts 3–12 months and can be renewed. Your employer might match the lower rate.

Younger workers now get employer contributions

From April 2026, 16 and 17-year-olds become eligible for mandatory employer contributions. Previously this only kicked in at 18.

For employers

Most payroll systems (Xero, Smartly, iPayroll, etc.) should update the rate automatically from the first pay run on or after 1 April 2026. Still worth double-checking it’s applied correctly.

A few things to keep in mind:

Employees may notice their pay is slightly lower
Some employees might apply to stay at 3%—you can choose whether to match that
You’ll need to start contributing for any 16 or 17-year-old employees

The bigger picture

Contribution rates matter, but so does everything else: your fund type, your provider, the fees you’re paying. Small differences add up over years of compounding.

If you’d like to understand how the KiwiSaver changes specifically impact you or your business, we recommend having a one-on-one conversation.

At Outside Accounting, we can walk you through what’s changing, what it means for your contributions or obligations, and any actions you should consider.

Your Outside Team

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