Employer Obligations

- Kiwisaver

Moana Financial Services

KiwiSaver Employer Obligations

A clear guide to what employers — including charities and not-for-profits — need to know about KiwiSaver obligations following the April 2026 changes.

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From 1 April 2026
Default contribution rate rises to 3.5%

The minimum employer contribution increases from 3% to 3.5% of gross salary. This applies to all pay days from 1 April — even if the pay period started in March. The employee default rate also rises to 3.5%.

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From 1 April 2026
16 and 17-year-olds now eligible

Employer KiwiSaver contributions are now compulsory for eligible employees aged 16 and 17. Previously, employer contributions were only required for those aged 18–65. These younger employees also now qualify for the government contribution.

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Employee choice
Temporary rate reductions

Employees can apply to IRD for a temporary rate reduction to stay at 3% for 3–12 months. If an employee provides you with their reduction certificate, you can choose to match the reduced 3% rate or continue paying 3.5%. When the reduction ends, you must increase back to at least 3.5%.

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Ongoing
Auto-enrolment obligations

As an employer, you must automatically enrol all new eligible employees in KiwiSaver. Eligible employees are aged 16–64, employed under a contract of service, and not already members. Employees have an opt-out window of 2–8 weeks after starting.

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Each pay cycle
Deduction and remittance

You must deduct KiwiSaver contributions from each employee's gross pay and pass them to Inland Revenue along with your employer contributions. Contributions are included in your regular employment information filing. Late payments can result in penalties.

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From 1 April 2028
Next rate increase to 4%

The default rate will increase again to 4% for both employees and employers. Plan ahead and budget for this increase in your wage costs.

Employer compliance checklist

Updated payroll to apply 3.5% employer and employee default rates from 1 April 2026
Identified and set up employer contributions for any eligible 16–17 year old employees
Communicated KiwiSaver rate changes to all staff
Established process for handling temporary rate reduction certificates from employees
Reviewed wage budget to account for higher employer contribution costs
Confirmed payroll software or provider has applied the updated rates
Checked auto-enrolment process is working for all new eligible employees

Need help ensuring your charity or NFP is meeting its KiwiSaver obligations?

Talk to our team
This information is general in nature and current as of March 2026. It is not a substitute for professional tax, payroll, or legal advice. For the latest KiwiSaver employer requirements, refer to ird.govt.nz. Contact Moana Financial Services for guidance specific to your organisation.