KiwiSaver Contribution Rates in New Zealand
Three separate amounts land in your KiwiSaver account: what you pay, what your employer pays, and what the government adds once a year. Knowing all three is how you spot the money you are leaving on the table. Cam walks through your own numbers with you in a free session.
In short
The default employee contribution rate is 3.5% of your before-tax pay, and you can choose 4%, 6%, 8% or 10% instead. Your employer must contribute at least 3.5% as well. Both minimums rise to 4% on 1 April 2028. The government adds 25 cents per dollar you contribute, up to $260.72 a year.
KiwiSaver contribution rates at a glance
Scroll the table sideways to see every column.
| Who pays | How much | What to know |
|---|---|---|
| You, as an employee | 3.5% of before-tax pay, or 4%, 6%, 8% or 10% | 3.5% is the default. Anything above it is your choice and can be changed through payroll. |
| Your employer | At least 3.5% of before-tax pay | A legal minimum, not a maximum. ESCT is deducted before it reaches your account. |
| The government | 25 cents per dollar, up to $260.72 a year | Needs $1,042.86 of your own contributions between 1 July and 30 June. |
| You, if self-employed | Whatever you choose | No employer and no set rate. See KiwiSaver for self-employed. |
| From 1 April 2028 | 4% employee and 4% employer | Both minimums are scheduled to rise again on that date. |
Want to see what a rate change does to your balance over twenty years rather than twenty minutes? The free KiwiSaver calculator projects it year by year, and it accounts for ESCT automatically.
What your employer has to pay into your KiwiSaver
If you are an employee contributing to KiwiSaver, your employer must contribute at least 3.5% of your before-tax pay on top of your own contributions. That minimum matches the employee minimum and rose on 1 April 2026. It is scheduled to rise again to 4% on 1 April 2028.
Three things about the employer contribution catch people out:
- 3.5% is a floor, not a ceiling. Some employers pay more than the minimum as an employment benefit. Your employment agreement is the place to check, and it is a fair thing to ask about in a job negotiation.
- ESCT comes off first. Employer Superannuation Contribution Tax is deducted before the money reaches your account, at a rate between 10.5% and 39% depending on your prior year's income. So the figure on your payslip is not the figure that lands in your balance.
- It does not count towards the government contribution. Only your own money counts towards the $1,042.86 threshold, which is why a low earner on the minimum rate can still miss out on part of the $260.72.
Since 1 April 2026 employers must also make contributions for eligible employees aged 16 and 17, who were previously left out. If you run a business and you are working out what that means for your payroll, the page for business owners and HR managers covers it, and Cam runs free workplace sessions for staff.
The government contribution: up to $260.72 a year
Once a year the government pays money into your KiwiSaver account, provided you have put in enough of your own. It used to be called the member tax credit and you will still hear both names. The current settings are:
- 25 cents for every eligible dollar you contribute yourself.
- A maximum of $260.72 in a KiwiSaver year, which runs 1 July to 30 June.
- You need $1,042.86 of your own contributions to receive the full amount.
- Aged 16 to 65, mainly living in New Zealand, with annual taxable income of $180,000 or less.
It is paid after 30 June based on what you actually contributed, so a partial year or a partial contribution earns a smaller amount rather than the full $260.72. Employer contributions and money transferred from an Australian scheme do not count towards the threshold.
The practical question is whether your own contributions clear $1,042.86 across the year. On the 3.5% minimum that takes roughly $29,800 of before-tax pay. Below that, a voluntary top-up before 30 June is often the highest-return thing you can do with a spare few hundred dollars, because the government matches a quarter of it immediately.
Changing your KiwiSaver contribution rate
Your contribution rate and your provider are two separate decisions, and you can change either without touching the other. To change your rate, tell your employer in writing which of 3.5%, 4%, 6%, 8% or 10% you want. They action it through payroll. Your provider is not involved and there is no fee. You can generally do this once every three months unless your employer agrees to do it sooner.
If money is genuinely tight, there is a middle option before stopping altogether. A temporary rate reduction lets you pay in at 3% for a period of three to twelve months, and your employer contributes at 3% while it is in place. You apply through myIR, and you keep the acceptance notice because a new employer will need to see it. When the period ends, contributions revert to 3.5% unless you apply again.
Changing provider is a different question, and it is the one most people should be asking. If you want to know whether your money is in the right place at all, start with the KiwiSaver comparison or read how changing your KiwiSaver provider actually works.
KiwiSaver contributions, answered
What is the minimum KiwiSaver contribution rate?
The default employee contribution rate is 3.5% of your before-tax pay. That has been the minimum since 1 April 2026, when it rose from the old rate, and it is scheduled to rise again to 4% on 1 April 2028. You can choose 4%, 6%, 8% or 10% instead at any time. If money is tight you can apply to Inland Revenue for a temporary rate reduction, which lets you pay in at 3% for between three and twelve months.
How much does my employer have to contribute to KiwiSaver?
Your employer must contribute at least 3.5% of your before-tax pay, matching the employee minimum, and that also rises to 4% on 1 April 2028. Some employers pay more than the minimum as a benefit, so it is worth checking your employment agreement. Since 1 April 2026 employers must also contribute for eligible employees aged 16 and 17. Employer contributions have ESCT deducted before they reach your account.
How much does the government contribute to KiwiSaver?
The government adds 25 cents for every eligible dollar you contribute, up to a maximum of $260.72 a KiwiSaver year, which runs from 1 July to 30 June. To receive the full amount you need to contribute at least $1,042.86 of your own money. You must be aged 16 to 65, mainly living in New Zealand, and have annual taxable income of $180,000 or less.
Do employer contributions count towards the government contribution?
No. Only your own contributions count towards the $1,042.86 you need for the full $260.72. Employer contributions and money transferred from an Australian scheme are both excluded. This catches out part-time and lower-paid employees in particular, because contributing the minimum on a smaller income can leave you short of the threshold and short of the full government contribution.
How do I change my KiwiSaver contribution rate?
Tell your employer in writing which rate you want, and they change it through payroll. You can pick 3.5%, 4%, 6%, 8% or 10%. You do not need your provider's permission and there is no fee. You can generally change your rate once every three months unless your employer agrees to do it sooner. If you are self-employed there is no set rate at all, so you decide the amount and the timing.
What is ESCT and why is my employer's contribution smaller than I expected?
ESCT stands for Employer Superannuation Contribution Tax. It is deducted from your employer's KiwiSaver contributions before they are paid into your account. The rate depends on your prior year's income and ranges from 10.5% for lower earners up to 39% for higher earners. This means the amount your employer contributes on paper is not the same as the amount that lands in your account.