KiwiSaver changes
The 2025 Budget is hot off the press. The headline change in the employment space is that mandatory employee and employer KiwiSaver contributions will increase.
What is changing:
- The minimum rate for employee and employer KiwiSaver contributions is increasing from 3% to 3.5% from 1 April 2026 and to 4% from 1 April 2028. However, employees can opt to continue with their/their employers’ contributions being at 3%.
- 16 and 17-year-olds will be entitled to mandatory employer KiwiSaver contributions from 1 April 2026.
What do you need to do:
- Changes will be automatic except:
- Employees who wish to remain at 3% will need to apply for a savings rate reduction (and can do so from 1 February 2026).
- 16 and 17 years olds will need to apply to join KiwiSaver to receive employer contributions (the age threshold for automatic enrolment will remain at 18 years old).
If you have any questions about how this may affect your employment practices, please don’t hesitate to contact our employment team.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
