KiwiSaver changes in 2025 and 2026
KiwiSaver has had its biggest changes in years. Here’s what changed, when, and what it means for your pay and your balance.
From 1 April 2026, the default KiwiSaver contribution rate rose from 3% to 3.5% for both employees and employers, and it’s set to rise to 4% from 1 April 2028. From 1 July 2025, the government contribution halved to 25 cents per dollar, up to $260.72 a year, and stopped for people earning over $180,000. 16 and 17-year-olds can now receive the government contribution, and employer contributions from 1 April 2026.
Reviewed by Kyle Hasson, Insurance and KiwiSaver Adviser (FSP1010252) · Updated October 2026
How we help
- Check your rate: make sure your contributions and your employer’s are what you expect.
- Get the full government contribution: contribute at least $1,042.86 each year to 30 June.
- Decide on the temporary 3% option: if your budget is tight.
- Review your fund and plan: while you’re looking at your KiwiSaver anyway.
What changed, and when
| Date | Change |
|---|---|
| 1 July 2025 | Government contribution halved to 25c per $1 you contribute, up to $260.72 a year |
| 1 July 2025 | No government contribution if your income is over $180,000 |
| 1 July 2025 | 16 and 17-year-olds became eligible for the government contribution |
| 1 April 2026 | Default employee and employer rate rose from 3% to 3.5% |
| 1 April 2026 | Employers must contribute for 16 and 17-year-old members |
| 1 April 2028 | Default rate set to rise to 4% |
The temporary 3% option
If the higher rate doesn’t suit your budget, you can apply to Inland Revenue for a temporary rate reduction to keep contributing at 3%, for between 3 and 12 months. You can apply again when it ends. Your employer can choose to match your reduced rate, so staying at 3% may mean they contribute less too.
What it means in dollars
On a $70,000 salary, moving from 3% to 3.5% means an extra $350 a year from you and an extra $350 a year from your employer before tax on employer contributions. Over decades, with investment growth, that can make a meaningful difference at retirement. Try our KiwiSaver calculator to see your own numbers.
Sources and further reading: Inland Revenue: KiwiSaver changes · Sorted: KiwiSaver
Kyle Hasson is an Insurance and KiwiSaver Adviser at Moneyplant in Papakura (FSP1010252), with a New Zealand Certificate in Financial Services (Level 5). Meet the team
This is general information only and isn’t personalised financial advice. Everyone’s situation is different, so please talk to one of our advisers before making decisions about your KiwiSaver.
2026 changes questions
Can’t see your question? Give us a call or send us a message. See our public disclosure for details of our fees and commissions.
Do I have to contribute 3.5%?
3.5% is now the default, but you can choose a higher rate (4%, 6%, 8% or 10%), or apply for a temporary rate reduction to stay at 3% for 3 to 12 months.
How much do I need to contribute to get the full government contribution?
At least $1,042.86 between 1 July and 30 June to receive the maximum $260.72.
Can 16 and 17-year-olds get KiwiSaver contributions?
Yes. They can receive the government contribution from 1 July 2025, and employer contributions from 1 April 2026, if they’re members and contributing. They aren’t automatically enrolled.
Why didn’t I get the government contribution?
Common reasons include contributing less than $1,042.86 in the year, earning over $180,000, being under 16 or over 65, or not living mainly in New Zealand. Check your details with Inland Revenue.
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