KiwiSaver’s new 3.5% rate: what changed in April 2026
Default KiwiSaver contributions rose to 3.5% on 1 April 2026. What it costs you, what your employer adds, and how to lower your rate for a while.
On 1 April 2026 the default KiwiSaver contribution rose from 3% to 3.5% of pay, for employees and employers alike. It’s due to rise again, to 4%, on 1 April 2028. If you didn’t choose a different rate, your payslip has been deducting 3.5% since April.
What it costs and what you gain
| Salary | At 3% | At 3.5% | Extra from you | Extra from your employer |
|---|---|---|---|---|
| $50,000 | $1,500 | $1,750 | $250 | $250 |
| $75,000 | $2,250 | $2,625 | $375 | $375 |
| $100,000 | $3,000 | $3,500 | $500 | $500 |
Every extra dollar you put in is matched by your employer (less employer superannuation contribution tax), so on $75,000 your KiwiSaver balance grows by about $750 more a year before tax and investment returns, while your take-home pay drops by $375.
Your options
- Stay at 3.5%. This happens automatically.
- Choose 4%, 6%, 8% or 10% by telling your employer. Your employer only has to match the default rate.
- Drop to 3% for a while. You can apply to Inland Revenue for a temporary rate reduction to 3% for 3 to 12 months. Your employer may also drop to 3% while yours is reduced. After that, you go back to 3.5%.
- Take a savings suspension if you can’t afford to contribute at all, for example during financial hardship.
Other KiwiSaver changes
- 16- and 17-year-olds now get employer contributions too, from 1 April 2026.
- The government contribution is now 25 cents for each dollar you contribute, up to $260.72 a year, and isn’t paid if your taxable income is over $180,000.
See how the rate affects your take-home pay with the New Zealand PAYE calculator, and how your balance could grow with the savings calculator.