Labour Would Make Employer KiwiSaver Payments Compulsory

Labour would make employer KiwiSaver contributions compulsory if it is elected.

Leader Chris Hipkins announced the policy at the Sharesies office in Wellington, in reporting published on 13 September 2026. RNZ

Under the proposal, compulsion would start on 1 July 2028. From that date, employer contributions would extend to workers over 65 and would continue while parents are on paid parental leave. The minimum employer contribution would lift to 6% by 2032.

Labour would also ban new total remuneration contracts, where the employer payment is counted as part of salary rather than paid on top. It would set the default employee rate at 4% and remove the minimum employee rate. Employers would still pay the full 6% even when workers reduce or pause their own payments.

Like a foundation that stays in place when the house above changes, the employer payment would stand alone. It would not stop during a reduced payment period. It would apply at all ages and during paid parental leave from 2028.

Current rules are as follows. According to Inland Revenue, employers must now pay compulsory KiwiSaver contributions of at least 3.5%. IRD The default employee rate and the matching employer rate will rise from 3% to 4% in two stages. IRD

Other parties have set out their positions. National proposes a phased rise to 6% from employees and 6% from employers by April 2032. Stuff NZ First leader Winston Peters proposes lifting both employer and employee contributions to 10%. Stuff For comparison, Australia's superannuation rate is 12%. Stuff

The broader context here is a shift from an opt-out workplace scheme with negotiated exceptions to a compulsory employer payment. A ban on new total remuneration contracts would close the channel for counting the payment as part of salary. Extending payments to workers over 65 and to paid parental leave would remove two recognised gaps in cover.

For the campaign, the question is how the parties differ and what can be negotiated. Labour, National and NZ First all point to 6% or more from employers. The differences sit in compulsion, timing, what happens when workers pause payments, and who is covered. Those details will matter for employers, payroll systems and coalition talks. They will also matter for voters weighing take-home pay against retirement savings.