What is the default KiwiSaver rate from April 2026?

The default KiwiSaver contribution rate increased from 3% to 3.5% on 1 April 2026, for both employees and employers. If you were on the 3% default, your rate automatically increased. You can apply to IRD via myIR for a temporary reduction back to 3% (no hardship test, lasts 3-12 months). The default will rise to 4% from 1 April 2028.

How much does increasing KiwiSaver reduce my take-home pay?

Each 1% increase in your KiwiSaver rate reduces your take-home by 1% of your gross salary. On a $65,000 salary, going from 3% to 3.5% costs $9.62 per week in take-home pay ($650 per year). Going from 3% to 8% costs $62.50 per week ($3,250 per year). However, your employer also increases their contribution (minimum matches your rate up to 3.5%, then stays at 3.5%).

Does my employer match my KiwiSaver contribution?

Your employer must contribute at least 3.5% (the new default from April 2026) regardless of your employee rate. If you contribute more than 3.5%, your employer is not required to match the higher amount, though some choose to. The employer contribution is paid on top of your salary and is subject to ESCT (Employer Superannuation Contribution Tax).

What is the government contribution to KiwiSaver?

The government contributes 50 cents for every dollar you contribute, up to a maximum of $521.43 per year ($10.03 per week). To get the full government contribution, you need to contribute at least $1,042.86 per year. On a salary of $30,000 at 3.5%, your annual contribution is $1,050, which qualifies for the full government contribution. From 1 July 2025, the maximum government contribution dropped to $260.72 and those earning over $180,000 no longer qualify.

Can I reduce my KiwiSaver rate back to 3%?

Yes. You can apply to IRD through myIR for a temporary rate reduction. No proof of financial hardship is required. The reduction lasts 3 to 12 months and can be reapplied for when it expires. Your employer can choose to match your reduced rate during this period.

NZ KiwiSaver Contribution Comparison 2026

Assumptions in This Calculator

Returns are after fees and tax (PIE tax). Actual returns vary by fund and year.

Government contribution: 50c per $1, max $521.43/yr. Applied at all rates where employee contributes at least $1,042.86/yr.

Retirement at age 65. Balance projections use compound growth with annual contributions.

Salary growth is applied annually. Contributions and employer match grow with salary.

Employer contribution is subject to ESCT but modelled at gross here for simplicity.

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Sources: KiwiSaver Act 2006 as amended. IRD KiwiSaver contribution rates (ird.govt.nz). Government contribution rates (ird.govt.nz).

Projections are estimates only and do not guarantee future returns. Actual KiwiSaver performance depends on fund choice, market conditions, and fees. Past returns do not predict future performance.

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KiwiSaver Contribution Comparison

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