The Government has introduced several KiwiSaver changes which will come into effect on 1 July 2025, 1 April 2026 and 1 April 2028.
What are the new default employer and employee contribution rates?
The default rates will rise from the current rate of 3% of salary and wages, to 4% in two stages. From 1 April 2026, the rate will increase to 3.5%, before increasing again on 1 April 2028 to 4%. Employees will be able to temporarily “opt down” to the current rate of 3% – and be matched by their employer at that rate. More details on this are to follow early 2026.
Government contribution halved
The government will be halving its annual contribution. Currently the government will contribute 50 cents per dollar of contribution by an employee, up to a maximum of $521.43 a year. From 1 July 2025 that will be halved to 25 cents per dollar, up to a new maximum of $260.72 a year.
For a KiwiSaver member to receive that full contribution, they will still need to contribute a minimum of $1,042.86 a year.
There’ll be no change to government contributions for the year ending 30 June 2025. These will be paid in July and August 2025 at the current government contribution rate.
How old can I be to access the government contribution?
The government contribution will be extended to include 16 and 17-year-olds from 1 July 2025, and they will be eligible for mandatory employer contributions as well, from 1 April 2026. The age for auto-enrolment will remain at 18.
Will it be means tested?
Those enrolled in the scheme with an income of more than $180,000 will no longer receive the government contribution. Eligibility for this will be tested according to one of the last two tax years based on the member’s income.
If you would like to discuss how these changes will impact you or your business, please feel free to get in contact with us.