From 1 April 2026, some KiwiSaver changes will come into effect. These are:
The minimum KiwiSaver contribution rate will increase to 3.5%.
Extending eligibility for employer contributions to those aged 16-17 years.
KiwiSaver Temporary Rate Reduction.
Refer to KiwiSaver changes on the IRD website.
Which rate to use for members on the minimum contribution rate
Always use the KiwiSaver contribution rate that applies on the date the employee is paid. This applies even if the pay period:
Spans dates before and after 1 April 2026, or
Ends on or before 31 March 2026, but payment is made after that date.
The start or end date of the pay period does not matter. The pay date is what determines the correct rate.
What this means in practice
If an employee is on the minimum KiwiSaver contribution rate, and their pay date is on or after 1 April 2026, the 3.5% rate applies to minimum contributions.
Other deductions
The same pay‑date rule applies to all deductions calculated using the PAYE tax tables, including:
ACC levies.
student loan repayments.
KiwiSaver contributions.
Examples
Example 1
An employer pays an employee on 2 April 2026 for the pay period 25 March to 1 April 2026.
Because the pay date is after 1 April 2026, the employer must use the 3.5% minimum KiwiSaver contribution rate unless the member elects to use a higher rate or has a temporary rate reduction.
Example 2
An employer pays an employee on 1 April 2026 for the pay period 16 March to 27 March 2026.
Because the pay date is on or after 1 April 2026, the employer must use the 3.5% minimum KiwiSaver contribution rate unless the member elects to use a higher rate or has a temporary rate reduction.
Example 3
An employer pays an employee on 31 March 2026 for the pay period 25 March to 1 April 2026.
Because the pay date is before 1 April 2026, the employer must use the 3% minimum KiwiSaver contribution rate unless the member elects to use a higher rate.
Example 4
An employer pays an employee on 2 April 2026 for the pay period 25 March to 1 April 2026. The employee applied and was granted a temporary rate reduction in February.
Because the pay date is after 1 April 2026, the employer must use the 3% reduced KiwiSaver contribution rate.
Updating your Kiwisaver Deduction
For the new 2026/27 FY, the lowest rate for your KiwiSaver contribution will change to 3.5%. You should update this in your KiwiSaver deduction and employer contribution codes, and this rate should be applied for pays processed after 01/04/2026.