KiwiSaver Program Updates 2025-2028

KiwiSaver Program UpdatesNew Zealand’s KiwiSaver program updates include reductions in government contributions, increases in employee and employer contributions, and high-income earners are no longer eligible for the government contribution. Multinational employers with operations or employees in New Zealand must be aware of these updates to ensure compliance and support their workforce.

1. Government Contribution Reductions (From July 1, 2025)

  • Government matching drops: The government contribution will reduce from 50 cents to 25 cents for every dollar contributed by a member, up to a new maximum of NZD $260.72 per year (previously $521.43).
  • High-income threshold: Employees earning over NZD $180,000 per annum will no longer be eligible for the government contribution.
  • Younger members, including those aged 16 and 17, now qualify for the government contribution if they meet other eligibility requirements.

2. Increased Minimum Contribution Rates

Phased increases: Both employer and employee minimum contribution rates will rise from the current 3% as follows:

  • From April 1, 2026: 3.5%
  • From April 1, 2028: 4%

Employees can apply for a temporary reduction to the original 3% rate for up to 12 months if needed. Employers can choose to match this reduced rate.

3. Employer Obligations for Younger Employees

Employer contributions for 16- and 17-year-olds: From April 1, 2026, employers must make KiwiSaver contributions for eligible employees aged 16 and 17, not just those 18 and older.

Timeline of Changes

  • July 1, 2025 – Govt. contribution reduced; high-income threshold; 16-17-year-olds eligible for government match
  • April 1, 2026 – Employer/employee minimum rate rises to 3.5%; employer contributions for 16-17-year-olds
  • April 1, 2028 – Employer/employee minimum rate rises to 4%

Special Considerations for Multinational Employers

  • Non-resident employers: If you do not have a fixed establishment in New Zealand, you are not required to offer KiwiSaver; however, you may choose to do so for eligible employees.
  • Casual and temporary staff: Eligibility and automatic enrollment rules may differ for employees on short-term or irregular contracts.

 

Centastone is Asinta’s employee benefits consulting Partner in New Zealand. If you need support with your employee benefits in the country, please contact Asinta, and we will connect you with the local experts at Centastone.