KiwiSaver is a voluntary savings scheme set up by the government to help New Zealanders to save for their retirement. All New Zealand residents and people entitled to live here permanently are eligible to join. All new eligible employees must be automatically enrolled in KiwiSaver. However, there are some employees who are exempt from automatic enrolment. These include:
Those under 18 years of age
Casual agricultural workers (who are employed on a day-to-day basis for no more than 3 months) or Election Day workers
Private domestic workers (if they pay their own PAYE)
Casual and temporary employees employed under a contract of service that is 28 days or less
Employees who are automatically enrolled can opt out but must do so within a specified time (from the end of week 2 of their employment to the end of week 8) by filing the prescribed from (KS10).
All eligible existing employees can join the scheme at any time they wish by notifying their employer.
Employees can choose to contribute at the rate of 3.5%, 4%, 6%, 8% or 10% of their salary. If an employee does not elect a rate, then the default rate of 3.5% will be used by the employer for contribution deductions made.
Compulsory Employer Contributions
It is compulsory for employers to contribute to their eligible employees' KiwiSaver scheme unless the employer is already paying into another registered superannuation scheme for the employee. The minimum compulsory employer contribution rate is 3%.
Employer contributions are subject to Employer Superannuation Contribution Tax (ESCT) on a progressive scale based on the employees' marginal tax rate.
1 April 2026 changes
If you’re an employee
If you’re contributing at the default rate of 3%, this will automatically rise to 3.5% for both your contribution and your employer’s.
Your employer will deduct 3.5% from 1 April (unless you apply for a temporary rate reduction). You do not need to do anything.
The new rate will affect all pay days from 1 April. So even if your pay period covers before and after 1 April, your whole contribution for that pay period will be deducted at the new rate.
If you’re contributing more than 3% already, your contributions will not change. However, if your employer is contributing 3%, this will rise to 3.5%.
If you’re aged 16 or 17
You’ll qualify for employer KiwiSaver contributions of 3.5% of your pay from 1 April 2026, so long as you meet other eligibility requirements.
If you are an existing KiwiSaver member, your employer will start making contributions automatically. You do not need to do anything.
Temporary rate reduction
A temporary rate reduction is available for people who want to carry on contributing at 3% from 1 April 2026.
You can apply for a temporary rate reduction for between 3 and 12 months. Your contributions will be reset to the default rate after 12 months. You can apply for the rate reduction as many times as you like.
Your employer can choose to match your temporary rate reduction. Once you move from the temporary rate to a higher rate, we’ll notify your employer.
Temporary rate reduction
If you’re an employer
You will need to:
Ensure your payroll settings are updated to apply the default employee and employer contribution rates of 3.5%.
Make employer contributions for your 16- and 17-year-old employees who are existing KiwiSaver members, or join through a provider.
Process any temporary rate reduction letters your employees give you.
1 April 2028 changes
The default KiwiSaver contribution rate will rise again to 4% (from 3.5%) for you and your employer.
Changes that have already taken effect
If you’re aged 16 or 17, you qualify for government contributions, so long as you meet other eligibility requirements.
From 1 July 2025, the government will contribute 25 cents for each dollar you contribute to KiwiSaver each year, with the maximum government contribution being $260.72.
If you earn more than $180,000 of taxable income a year, you do not qualify for the government contribution.
Employers must:
Give new employees and other existing staff who are interested an Employee information pack (KS3)
Pass employees' details to Inland Revenue to enable them to be enrolled
Deduct contributions from employees' gross salary and pay these to Inland Revenue through the PAYE system
A list of KiwiSaver providers is available at www.ird.govt.nz/kiwisaver/
For more information on KiwiSaver and how this may apply to you give us a call or refer to the KiwiSaver for Employers information available on the Inland Revenue website.
