From 1 April 2026, several important changes to KiwiSaver will take effect. These changes will impact payroll processes, employer contribution obligations, and employee communications. We recommend employers begin preparing now to ensure a smooth transition.
Key changes employers need to be aware of:
– The minimum employee contribution rate will increase from 3% to 3.5%.
– The minimum employer contribution rate will also increase from 3% to 3.5%.
Payroll systems must be updated to apply the new minimum employer contribution rate from 1 April 2026.
– From 1 February 2026, employees will be able to apply to Inland Revenue to temporarily remain on the 3% contribution rate instead of moving to 3.5%.
– Inland Revenue will notify employers where an employee has an approved temporary rate reduction.
– Employers will need to ensure payroll systems can accommodate different contribution rates across employees.
– From 1 April 2026, employers will be required to make KiwiSaver employer contributions for eligible employees aged 16 and 17.
– This obligation previously applied only to employees aged 18 and over.
Employers should review their workforce to identify any affected employees and ensure payroll settings are correct.
Recommended employer actions
– Review and update payroll systems ahead of 1 April 2026.
– Identify any employees aged 16 or 17 who are KiwiSaver members.
– Prepare communications for employees.
– Communicate with employees in advance about the contribution rate increase and its impact on their pay.
– Check employment agreements and KiwiSaver-related policies to ensure they remain accurate.
Looking ahead
The minimum KiwiSaver contribution rates are currently scheduled to increase again to 4% from 1 April 2028, which employers may wish to factor into longer-term workforce and remuneration planning.
If you would like assistance, updating policies, or preparing employee communications, please let us know.