KiwiSaver Changes: What You Need to Know

The Government has announced several changes to KiwiSaver, rolling out from 1 July 2025, 1 April 2026, and 1 April 2028. These updates affect government contributions, employer and employee contribution rates, and eligibility for younger workers.

From 1 July 2025 – Government Contributions

• The government contribution reduces from 50 cents to 25 cents for every dollar contributed.

• The maximum annual contribution drops from $521.43 to $260.72.

• 16 and 17-year-olds will now qualify for government contributions (if eligibility criteria are met).

• Individuals earning over $180,000 taxable income per year will no longer be eligible for the government contribution.

• No changes apply to the year ending 30 June 2025 — these contributions will still be paid at the current rate in July–August 2025.

From 1 April 2026 – Contribution Rate Changes

• The default employee and employer contribution rate increases from 3% to 3.5%.

• Employees can apply for a temporary rate reduction (from 1 February 2026) to continue contributing at 3% from 1 April 2026.

• Temporary reductions can last 3 to 12 months and can be applied for multiple times.

• Employers may choose to match the reduced rate during this period.

KiwiSaver for 16 & 17-Year-Olds

• From 1 April 2026, employers must contribute to KiwiSaver for eligible 16 and 17-year-old employees who are contributing from their wages.

• Previously, employer contributions only applied to employees aged 18–65.

From 1 April 2028

• The default employee and employer contribution rate will increase again to 4%.

These changes may affect take-home pay, employer costs, and long-term retirement savings. Reviewing payroll settings and contribution strategies ahead of time is strongly recommended.