The quick and dirty 

• On 1 April 2026, minimum contribution rates increase from 3% to 3.5% for both employees and employers (rising again to 4% in April 2028) 

• If you're happy with this, do nothing, it happens automatically 

• If you already contribute more than 3%, nothing changes for you, but your employer's minimum increases to 3.5% 

• If you can't afford the extra 0.5% (roughly $6/week for someone earning $60k), you can apply to IRD to stay at 3% for up to 12 months 

• Important catch: If you drop to 3%, your employer can choose to match at only 3% instead of 3.5% 

The Details

In May 2025, the Government announced it would increase KiwiSaver contributions from 3% to 4% over three years.  

The goal: help New Zealanders save more for retirement and bring us closer to global norms (Australia contributes 12%, the OECD average is 15%). 

To ease the transition, the changes are staged: 

What If You Can't Afford the Increase? 

If you're unable or unwilling to contribute the extra 0.5%, you can apply to IRD to stay at 3% for up to 12 months. After that period, you'll automatically increase to 3.5% unless you apply for another exemption. 

Critical detail: If you stay at 3%, your employer can also choose to contribute only 3% (instead of the new 3.5% minimum), meaning less total money goes into your account.