In version 2025.1.401, you might get this warning when updating employer contribution rates on the Update KiwiSaver Rates form (MPPP2321).
Until you update your employer KiwiSaver pay items, you won't be able to comply with the minimum employer contribution rate to meet the new until you change the pay item settings.
What causes the warning
You get the warning if your company uses one employer KiwiSaver pay item to both:
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set the legislated minimum contribution and
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apply higher contribution rates for some employees.
For example, the warning occurs if an employee’s standard pay uses the employer’s legislated minimum rate (3% before updating) and the pay item has the Override legislated KiwiSaver Employer Super Contribution rate checkbox selected.
Update your employer contribution pay item
Create separate employer KiwiSaver pay items for higher contribution rates
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Use the Update KiwiSaver Rates form to review each employee’s employer KiwiSaver pay item and rate.
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Create a distinct employer KiwiSaver pay item for each higher rate you offer (for example, 4%, 5%, 8%, etc.).
Reassign higher‑rate employees to the new pay items
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Remove the existing employer KiwiSaver pay item from the employee’s standard pay.
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Assign the appropriate new employer KiwiSaver pay item (4%, 5%, 8%, etc.) to any employee who should receive a higher employer contribution rate.
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Save your changes.
Remove the override from the original employer KiwiSaver pay item
For the original employer KiwiSaver pay item that previously covered both minimum and higher rates, you have to remove the override and use the default legislated rate
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Deselect the Override legislated KiwiSaver Employer Super Contribution rate checkbox on the employer KiwiSaver pay item. The pay item will then default to the current legislated minimum rate of 3% (before 1 April 2026).
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After that, use the Update KiwiSaver Rates screen to update employees to the new 3.5% rate when required.