KiwiSaver Contribution Rates Guide 2025-26 & 2026-27 — Post Budget 2025 Rules

KiwiSaver is New Zealand’s workplace retirement savings scheme. Budget 2025 reset almost every headline number — the employer minimum, the default employee rate, the government contribution, and eligibility rules all changed in two stages (1 July 2025 and 1 April 2026). This guide reflects the rules actually in force today. If you’ve seen older articles quoting a 3% employer minimum or a $521.43 government contribution, those were true before 1 July 2025 — and they’re no longer current.

What changed and when

Date	Change
1 Jul 2025	Government contribution halved from 50c/$1 to 25c/$1; max cut from $521.43 to $260.72; new $180,000 prior-year income cap; employer contributions required for 16- and 17-year-olds
1 Apr 2026	Employer minimum rose from 3% to 3.5%; default employee rate rose from 3% to 4%; temporary rate reduction available
1 Apr 2028	Employer minimum rises again to 4%; employee default stays at 4%

Employee contribution rates

You choose how much of your gross pay goes into KiwiSaver:

Rate	Per $1,000 of gross pay
3%	$30
4%	$40
6%	$60
8%	$80
10%	$100

Default rate changed on 1 April 2026. If you’re newly auto-enrolled (or were on the old 3% default), your rate moved to 4% automatically. You can apply to Inland Revenue for a temporary rate reduction back to 3% for 3–12 months if you need the extra cash flow — renewable. You can also voluntarily choose 6%, 8%, or 10% at any time by notifying your employer in writing.

Your contribution is calculated on gross pay before tax, so a 1-percentage-point rate increase reduces take-home pay by almost the full 1% of gross (net of PAYE, ACC, and student loan effects on the deduction).

Employer contributions

Your employer must contribute a minimum of your gross pay into KiwiSaver:

• Until 31 March 2026: 3%
• From 1 April 2026: 3.5%
• From 1 April 2028: 4%

This is on top of your wages — it doesn’t come out of your salary. Some employers voluntarily match above the minimum (especially for higher employee rates), but this is less common.

Example — $75,000 salary at 4% employee / 3.5% employer (2026-27):

• Employee contributes: $75,000 × 4% = $3,000 per year
• Employer contributes: $75,000 × 3.5% = $2,625 per year
• Total going into KiwiSaver: $5,625 per year

Employer contributions are subject to Employer Superannuation Contribution Tax (ESCT), levied at your marginal rate. The amount that actually lands in your fund is therefore slightly less than the stated percentage — roughly 2.8% net for a typical middle-income earner after ESCT.

16- and 17-year-olds

From 1 July 2025, employer contributions are mandatory for 16- and 17-year-old employees who are KiwiSaver members. Before this, employers could choose whether to contribute for under-18s. This fixes a gap that had penalised young workers in their first jobs.

Government contribution (Member Tax Credit)

The government also pays into your KiwiSaver account each year, but the rules changed on 1 July 2025:

• Match rate: 25 cents per $1 you personally contribute (halved from 50c)
• Maximum: $260.72 per year (halved from $521.43)
• Trigger: contribute at least $1,042.86 of your own money between 1 July and 30 June
• Income cap: prior-year taxable income must be $180,000 or less (new)
• Age: 18 or over at 30 June
• Residence: mainly living in New Zealand

Employer contributions do not count toward the $1,042.86 trigger — only your own PAYE deductions and voluntary lump sums.

Example — $30,000 salary at 3%:

Annual employee contribution = $900 (below the $1,042.86 trigger). Government contribution = $900 × 25% = $225. To unlock the full $260.72, make a $142.86 voluntary top-up before 30 June.

See the KiwiSaver Government Contribution Calculator for your exact situation.

Worked example: full picture at $60,000

Someone earning $60,000 per year contributing at the new 4% default in 2026-27:

Component	Annual Amount
Employee contribution (4%)	$2,400
Employer contribution (3.5% gross, ~2.9% net of ESCT)	~$1,740 net to account
Government contribution (if eligible)	$260.72
Total into KiwiSaver	~$4,401

Compare with the same person under pre-Budget-2025 rules (3% employee, 3% employer, $521.43 match): total was ~$4,143. The higher employer percentage more than offsets the halved match for this earner.

Savings suspensions (contribution holidays)

If you’re in financial hardship you can apply to IRD for a savings suspension to pause your contributions:

• You must have been a KiwiSaver member for at least 12 months before applying (hardship exceptions apply)
• Suspensions are granted for 3 months to 1 year; renewable
• During a suspension, employer contributions also stop
• Voluntary lump-sum contributions during a suspension still count toward the $1,042.86 MTC trigger

Submit a KS6 Savings Suspension form via myIR. The temporary rate reduction to 3% is usually a better fit than a full suspension if you can still afford 3% contributions.

Opting out

New employees are automatically enrolled in KiwiSaver. You have a 2–8 week window after starting to opt out. After that, you’re locked in until age 65 (with narrow hardship and serious-illness exceptions). If you’ve been opted out for 12 months and re-enrol, the opt-out window restarts.

Choosing your rate

Move to 4% (or higher) if:

• You can absorb the extra employee deduction
• You’re over 40 and behind on retirement projections
• You want to maximise the government contribution (4% clears the $1,042.86 trigger at any salary over $26,072)
• Your employer matches above 3.5% for higher rates (ask HR)

Apply for temporary 3% reduction if:

• Cash flow is tight right now
• You have higher-interest debt to clear first
• You’re saving intensely for a first-home deposit and need KiwiSaver-eligible contributions only

Consider 6%, 8%, or 10% if:

• You’re in a lower tax bracket (ESCT penalty is smaller)
• KiwiSaver is your main forced-savings tool
• You’re using it for a first-home withdrawal in 3+ years

First home withdrawal

KiwiSaver’s first-home withdrawal lets you pull most of your balance (minus a minimum $1,000) toward a first home after 3 years of membership. Employee, employer, and investment returns are all withdrawable. Government contributions (the MTC balance) are not — they stay behind in your account.

Higher contribution rates build the withdrawable pool faster.

KiwiSaver after 65

From age 65 you can withdraw everything — lump sum, regular drawdown, or leave it invested. Government contribution eligibility ends once you’re eligible to withdraw. Some people stay in KiwiSaver into their 70s because they like the low-fee fund; you can keep contributing (including as a self-employed person) but there’s no compulsory employer match once you’re past the withdrawal-eligible age.

Summary

• Employee rates: 3%, 4%, 6%, 8%, or 10% — new default is 4% from 1 April 2026
• Employer minimum: 3.5% from 1 April 2026, rising to 4% on 1 April 2028
• Government contribution: $260.72/year max (halved in Budget 2025); $180k income cap applies
• Temporary rate reduction to 3% available for 3–12 months (renewable)
• 16- and 17-year-olds now get employer contributions
• Use the KiwiSaver Calculator or 3% vs 4% Calculator to model your situation