KiwiSaver contributions in 2026–27: the new 3.5% rate

Last reviewed October 23, 2026

How much do I put in?

Your contribution comes out of your pay, after tax. You can choose:

3.5% (the default from 1 April 2026)
4%, 6%, 8% or 10%

Want to stay at 3% for now? You can apply to IRD for a temporary rate reduction to 3%. It lasts between 3 and 12 months, then goes back to the default, and you can apply again.

From 1 April 2028, the default rises again, to 4%.

How much does my employer add?

Your employer must pay at least 3.5% of your pay into your KiwiSaver, on top of your salary, if you’re 16 or over and under 65. (If you’re on the temporary 3% rate, they can match that instead.)

Their contribution is taxed before it reaches your account. This tax is called ESCT, and the rate depends on what you earn:

Your salary plus employer contributions	ESCT rate
Up to $18,720	10.5%
$18,721 to $64,200	17.5%
$64,201 to $93,720	30%
$93,721 to $216,000	33%
Over $216,000	39%

What does the government add?

For every dollar you put in, the government adds 25 cents, up to $260.72 a year. To get the full amount, you need to put in $1,042.86 between 1 July and 30 June. You don’t get it if your income is over $180,000.

Example: $70,000 a year at 3.5%

What goes into KiwiSaver on $70,000 a year At the 3.5% default rate, 2026–27

Part	Amount
You (3.5% of your pay)	$2,450.00
Your employer (3.5%, after ESCT)	$1,715.00
The government	$260.72
Total into your KiwiSaver	$4,425.72

Your employer's 3.5% is shown after $735 of employer contribution tax (ESCT). The government contribution is paid once a year into your account.

On $70,000, you put in $2,450 over the year, well over the $1,042.86 needed for the full government contribution. Your employer’s $2,450 has 30% ESCT taken off, so $1,715 reaches your account.

Not an employee?

If you’re self-employed, between jobs or on parental leave, nothing comes out of a pay for KiwiSaver. You can still pay in voluntary contributions, directly to your provider or through IRD, whenever you like. Putting in $1,042.86 by 30 June each year gets you the full government contribution.

See it in your pay

Choose your KiwiSaver rate in our PAYE calculator to see your take-home pay and what your employer adds. For other rates, see New Zealand tax rates 2026–27.

Frequently asked questions

What is the KiwiSaver default rate in 2026–27?

3.5% of your pay, up from 3% on 1 April 2026. You can also choose 4%, 6%, 8% or 10%. The default rises again, to 4%, on 1 April 2028.

Can I stay at 3%?

Yes, for a while. You can apply to IRD for a temporary rate reduction to 3%, for 3 to 12 months at a time. Your employer can then match 3% instead of 3.5%.

Does my employer have to match a higher rate?

No. Your employer must pay at least 3.5% of your pay, whatever rate you choose. Some employers offer more, so check your employment agreement.

Why is my employer’s contribution less than 3.5%?

Because it’s taxed before it reaches your account. This tax, ESCT, is 10.5% to 39%, depending on your salary plus your employer’s contributions. On 0,000 it’s 30%.

How do I get the government contribution?

Put in at least $1,042.86 between 1 July and 30 June, and the government adds 25 cents per dollar, up to $260.72. You don’t get it if your income is over $180,000.