KiwiSaver contribution rates in 2026: what changed and what comes next

By GrowThenDraw Editorial Team · Updated July 28, 2026 · 10 min read · Editorial policy

KiwiSaver's minimum contribution changed on 1 April 2026. The default employee rate and minimum compulsory employer rate are now 3.5%, and another scheduled increase arrives in April 2028.

The change looks simple, but age, eligibility, temporary reductions and employment agreements affect what appears on a payslip. This guide separates the statutory baseline from the exceptions.

The employee rate is 3.5% unless you choose more

Employees can choose 3.5%, 4%, 6%, 8% or 10% of gross salary or wages. If no higher rate is selected, 3.5% is the default for paydays from 1 April 2026.

Members who were already contributing above 3% did not have their chosen employee rate changed merely because the minimum rose. Contribution-rate changes can generally be made once every three months unless the employer agrees to a shorter interval.

The compulsory employer minimum is also 3.5%

For an eligible employee, the compulsory employer contribution is at least 3.5% of gross salary or wages from 1 April 2026. An employer can contribute more, but the compulsory amount is normally subject to ESCT before it reaches the member account.

Eligibility includes being a KiwiSaver or complying-fund member, having employee contributions deducted, being at least 16 and being under 65. Defined-benefit and other special arrangements can change the result.

Employees aged 16 and 17 now receive compulsory employer money

From 1 April 2026, eligible KiwiSaver members aged 16 and 17 qualify for the minimum compulsory employer contribution. Existing members in this age group should receive it automatically when the other conditions are met.

Government-contribution eligibility for ages 16 and 17 began earlier, from 1 July 2025. Employer and government money have different conditions and should not be treated as the same benefit.

The minimum is scheduled to become 4% in April 2028

The second stage raises the default employee rate and matching compulsory employer minimum from 3.5% to 4% on 1 April 2028. A long-term projection that freezes the 2026 minimum forever will therefore understate contributions under the currently enacted schedule.

GrowThenDraw applies the 4% rate from April 2028 when today's 3.5% minimum is selected. It leaves a chosen 4%, 6%, 8% or 10% employee rate unchanged.

A temporary reduction can preserve the 3% rate

A member who cannot afford the increase can apply through myIR for a temporary rate reduction to 3%. An approved reduction lasts between three and twelve months and can be applied for again.

An employer can reduce its contribution to match the temporary employee rate. Because a certificate has individual start and end dates, the calculator does not pretend a permanent 3% selection is the standard 2026 rule.

Check the employment agreement as well as the rate

Some employment packages include the employer contribution inside total remuneration. Inland Revenue says an employer contribution is otherwise paid on top of salary or wages, and minimum-wage tests exclude the compulsory employer component.

The calculator assumes the entered salary is the employee's gross salary or wages and shows employer money separately. It cannot interpret an employment contract, so use the offer letter and payslip when comparing jobs.