Payroll Bulletin 17
PAYROLL CHANGES EFFECTIVE 1ST APRIL 2026
Significant changes to New Zealand's minimum wage and KiwiSaver contribution rates are confirmed to take effect on 1 April 2026. These adjustments are designed to boost retirement savings and manage cost-of-living pressures, as part of the 2025 Budget and subsequent announcements. Here are the details regarding the changes:
1. KiwiSaver Rate Changes (Effective 1 April 2026)
Contribution Increase: The default KiwiSaver contribution rate for both employees and employers will increase from 3% to 3.5%.
Opt-Down Option: If you prefer to stay at the 3% rate, you can apply for a temporary rate reduction (ranging from 3 months to 12 months) through the Inland Revenue Department (IRD). Applications for this reduction open on 1 February 2026.16 & 17-Year-Olds: Employees aged 16 and 17 will become eligible for mandatory employer contributions for the first time.Future Increases: A further increase to 4% for both parties is scheduled for 1 April 2028.
2. Minimum Wage Changes (Effective 1 April 2026)
Adult Minimum Wage: Increases by 45 cents, from $23.50 to $23.95 per hour.
Starting-Out/Training Wage: Increases to $19.16 per hour (maintaining 80% of the adult rate).
3. Other Related Changes
The ACC Earners Levy will increase to 1.75% from 1.67% with the income threshold moving to $156,641 from $152,790.
Source of information
https://www.ird.govt.nz/kiwisaver-changeshttps://www.mbie.govt.nz/about/news/minimum-wage-set-for-2026https://support.ipayroll.co.nz/portal/en/kb/articles/next-year-changes-for-you-and-your-employees
If you have any questions or need further information, please don't hesitate to contact Olga at olga@topflight.co.nz
