Your KiwiSaver contributions will increase over the next two years. From 1 April 2026, both you and your employer will contribute 3.5% of your wages instead of 3%. Then from 1 April 2027, those contributions rise again to 4%. The government confirmed this in a statement on 19 June 2026.

This is the first time the minimum contribution rate has been increased in over a decade. KiwiSaver has been adjusted by different governments since its launch in 2006, but the baseline rate has stayed at 3% since 2012.

What changes, and when

From 1 April 2026:

• Your contribution: 3.5% (up from 3%)
• Your employer's contribution: 3.5% (up from 3%)

From 1 April 2027:

• Your contribution: 4% (up from 3.5%)
• Your employer's contribution: 4% (up from 3.5%)

The increases happen in two steps rather than all at once. This gives businesses — especially smaller ones — time to adjust their payroll systems and budget for the extra cost.

The money side

For you, the increase means less money in your pay packet each week or fortnight. For someone on the median wage, moving from 3% to 4% contributions adds up over time.

For your employer, it is a straightforward cost: an extra 1% of your wages to put into your KiwiSaver account. Employers pay tax on their contributions, so there is no government subsidy softening the impact.

The bigger picture

The government also cut the amount it adds to your KiwiSaver account as part of its 2025 budget decisions. For every dollar you contribute, the government used to add 50 cents (up to a maximum of $521.43 per year). Now it adds 25 cents (up to a maximum of $260.72). This is a meaningful reduction in the Crown's support.

But higher contributions compound over time. Money that sits in your KiwiSaver account earns returns, which themselves earn returns. The Commission for Financial Capability found that under these new settings, KiwiSaver balances could last 30% longer in retirement than they would have under the old rules.

What it means for you

You will take home less pay while you are working, but your KiwiSaver balance will grow faster — especially if you are still early in your career and have decades of compound growth ahead. The exact trade-off depends on your personal situation: how long you have been saving, which fund you are in, and when you plan to retire.

The changes affect nearly everyone in KiwiSaver at the current minimum contribution rate — the government says about 99.5% of members.

For more details about how the changes work, see the Inland Revenue website.