There are some important things that you may need to do before the start of the new financial year on 1 April:
- Kiwisaver changes. If you are an employer, you will probably need to make changes in your payroll system and also any salary automatic payments. See below for further details
- Stock-take. If you have inventory or stock in your business, please make sure you have a stock-take of what is on hand at 31 March 2026
- Kiwisaver changes. If you are an employer, you will probably need to make changes in your payroll system and also any salary automatic payments. See below for further details
We’ve also added a few call-outs for those of you in the not-for-profit sector (clubs, societies and charities). If this is of interest to you, see below
KiwiSaver changes
Contribution rates are increasing
From 1 April 2026, the default KiwiSaver contribution rate increases:
- Employees: from 3% to 3.5%
- Employers: from 3% to 3.5%
If an employee is currently on the default 3%, this change happens automatically — no action needed from them.
Note: The new rate applies to all pay days on or after 1 April, even if the pay period started earlier.
Employees already contributing more than 3% won’t see their own rate change, but employers contributing only 3% will still need to lift their contribution to 3.5%
16- and 17 year old employees
From 1 April 2026, eligible 16- and 17 year old employees will also qualify for employer KiwiSaver contributions.
- Employers must contribute 3.5%
- Contributions start automatically
If you employ younger staff, it’s worth double checking your payroll setup.
Temporary rate reductions
Employees can apply to Inland Revenue to stay at 3% for a period of 3 to 12 months.
- Inland Revenue will notify you if this applies
- Employers may choose whether or not to match the reduced rate
What employers should do now
Before 1 April, make sure you:
- Update payroll systems to the 3.5% default rates
- Allow for KiwiSaver contributions for 16–17 year olds
- Have a process in place for temporary rate reduction notices
Looking ahead, the default rate will increase again to 4% from 1 April 2028.
The material on this website is for the benefit and information of clients. The items are in the nature of general comments only, and are not to be used, relied or acted upon without seeking further professional advice. Hounsell Accounting Limited accepts no liability for any errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice
