Changes to KiwiSaver: how to get your business ready

Major changes to KiwiSaver were announced last year. The KiwiSaver voluntary savings scheme is aimed at helping New Zealand workers save for retirement, or buy a first house. But with the rising cost of living, action was taken to make KiwiSaver fit for purpose and more fiscally sustainable as a savings scheme. How will these changes affect your employees and your small business?

Let’s take a look at the details of these KiwiSaver changes coming into place from 1 April 2026.

1. Employer contributions will rise to 3.5%: From April 2026, the default KiwiSaver contribution rates for both employers and employees will rise to 3.5% – up from 3%.  
2. Employees can choose to remain contributing at 3%: Employees who are members of the KiwiSaver scheme will be able keep their contributions at the current rate. They can apply for a temporary rate reduction from 1 February 2026, if they want to continue contributing at 3% from 1 April 2026.
3. Employers can match the rate reduction: As an employer, you’ll be able to match your employee’s temporary rate reduction. Once your employee moves to a higher contribution rate, you’ll need to increase your employer contributions to the default 3.5% rate. Inland Revenue will notify you of this change.
4. Younger workers will qualify for KiwiSaver contributions: People aged 16 and 17 will qualify for employer contributions. If they contribute to KiwiSaver from their wages, you will need to start making employer contributions.  

From 1 April 2028, the default contribution rates for employers and employees will rise again to 4% (up from 3.5%).  

Getting ready for the KiwiSaver changes

These amendments to KiwiSaver are on top of the changes that came into place in July 2025, and they could have a significant impact for your small business.

Increased employer contributions will increase your payroll costs and stretch your cashflow. You will also need to update your payroll software and processes, to ensure you are making the correct contributions, for the correct people, at the correct rates.

Come and talk to us about preparing for these KiwiSaver changes.