Changes to KiwiSaver contributions

From 1 April 2026, if you are an employee and you’re contributing at the default rate of 3%, your contribution and your employer’s matching contribution will automatically increase to 3.5% from 1 April 2026. You don’t need to do anything.

If you already contribute more than 3%, your employee contribution stays the same. If your employer was contributing 3%, their matching contribution will rise to 3.5%.

Changes impacting 16 and 17-year olds

From 1 April 2026, 16- and 17-year-olds who meet the usual eligibility requirements will receive employer KiwiSaver contributions at the 3.5% rate of pay. Employers should start these contributions automatically; but it’s worth checking in with your employer.

Temporary rate reduction

If you want to continue contributing at 3% from 1 April 2026, you can apply for a temporary rate reduction. The reduction can last for 3 to 12 months. After 12 months your contributions revert to the default rate. You can reapply for further temporary reductions as often as you need. Your employer may choose to match your temporary reduced rate. Inland Revenue will send you a notification within 30 days of your temporary rate reduction’s end date to let you know it’s about to stop and will also let your employer know closer to the time. To read more on how to apply for a rate reduction read here.

1 April 2028 changes

The default KiwiSaver contribution rate will increase again, to 4% for both employees and matching employer contributions from 1 April 2028.

Changes already in effect

• From 1 July 2025 members aged 16 and 17 have become eligible for the Government contribution subject to eligibility criteria.
• The annual Government contribution was reduced from 50 cents to 25 cents for each dollar you contribute, up to a new maximum of $260.72 per year. 
• To qualify for this government contribution, you must meet the usual eligibility requirements and have taxable income of $180,000 or less per year.

If you have any questions about what these changes mean for your KiwiSaver account or need further clarification, please do not hesitate to reach out to the Helpline team on 0508 637 237 or speak with a Mercer Financial Adviser.

<sup>This article has been prepared by Mercer (N.Z.) Limited. The information contained in this article is intended for general guidance only. It does not take into account your particular financial situation or goals. Before making any investment decision, you should refer to the Product Disclosure Statement or consult an appropriately qualified financial adviser.

Copyright 2026 Mercer (N.Z.) Limited. All rights reserved.</sup>