KiwiSaver changes
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From 1 April 2026, the default minimum contribution rate for both employees and employers will increase from 3% to 3.5%.
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From 1 April 2026, employees aged 16-17 who are enrolled in KiwiSaver will become eligible for compulsory employer contributions.
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From 1 February 2026, employees can apply to Inland Revenue for a temporary rate reduction from 3.5% to 3%, applicable 1 April 2026.
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The rate reduction also applies to employer contributions, allowing them to temporarily contribute 3%.
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The rate reduction can be approved for a minimum of three months to a maximum of 12 months. Employees must re-apply to extend it.
Complying with the changes
Apply the debug package
We’ve made a debug package available to automate the rate reduction process. This debug package only works with version 2025.3. If you're using an earlier version, you can still add a rate reduction, but it takes some extra steps.
Learn more about adding a KiwiSaver rate reduction in Greentree.
Here's what the package does when applied:
- Creates the the new KiwiSaver default reduction rate (3% from 1 April 2026) on the HR Module Control form.
- The holiday contributions table on the Tax Config tab of the Employee Maintenance form now records both Savings Suspensions (previously known as Holiday Contributions) and Rate Reductions. Any existing KiwiSaver holiday contributions will be automatically set a Type of Savings Suspension.
The package does not change employee deductions, employer cost lines or any pays.
Add the new rate to transaction types for KiwiSaver deductions, complying fund deductions and employer costs
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Go to HR > System > Payroll > Transaction Type > Deductions.
- On the Main tab, add a new line with an amount of 3.5 and an effective date of 01/04/2026.
- Save your changes.
- Go to HR > System > Payroll > Transaction Type > Employer Costs.
- On the Main tab, add a new line with an amount of 3.5 and an effective date of 01/04/2026.
Note: If you have any employees that have either/or both a 3% rate entered against the KiwiSaver Deduction and KiwiSaver Employer Cost on the HR Employee Maintenance screen you will need to manually update these to 3.5%.
Add employer contributions to employees aged 16 or 17
From 1 April 2026, employees aged 16 or 17 who are already enrolled in KiwiSaver or a complying fund will become eligible for compulsory employer contributions.
Before processing the first pay that will be paid on or after 01 April 2026, you must add the KiwiSaver Employer Cost or Complying Fund Employer Cost transaction types to any employees who are already enrolled in KiwiSaver and are aged 16 or 17.
For new employees created on the Employee Maintenance form who are aged 16 or 17, the KiwiSaver status will default to Not Eligible for KiwiSaver.
If the employee is already enrolled in a KiwiSaver scheme, then you must update their KiwiSaver status.