If you are an employer, you need to be aware of several changes to KiwiSaver which will come into effect on 1 July 2025, 1 April 2026 and 1 April 2028.
Government KiwiSaver contributions – 1 July 2025 Changes
The government contribution has dropped from 50 cents to 25 cents for each dollar you contribute to KiwiSaver each year, dropping the maximum government contribution from $521.43 to $260.72.
People aged 16 and 17 will now qualify for government contributions, so long as they meet other eligibility requirements. Prior to 1 July 2025, members must be 18 or older to qualify.
People who earn more than $180,000 of taxable income in a year will no longer qualify for government contributions.
There’ll be no change to government contributions for the year ending 30 June 2025. These will be paid in July and August at the current government contribution rate.
Default employer and employee contribution rates – 1 April 2026 Changes
The default KiwiSaver contribution rates for employers and employees will rise to 3.5% (from 3%).
Members will be able to apply for a temporary rate reduction from 1 February 2026 if they wish to continue contributing at 3% from 1 April 2026.
As an employer, you will be able to match your employee’s temporary rate reduction. Once your employee moves to a higher contribution rate, you will need to increase your employer contributions to the default 3.5% rate. Inland Revenue will notify you of this.
People aged 16 and 17 will qualify for employer contributions from 1 April 2026, so long as they meet other eligibility requirements. If they contribute to KiwiSaver from their wages, you will need to start making employer contributions.
1 April 2028 changes
The default contribution rates for employers and employees will rise to 4% (from 3.5%).
Source: KiwiSaver changes(external link)
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