KiwiSaver contribution rates to increase; Cuts to Govt contribution

Key Points:

• Eligibility Extended to 16- and 17-year-olds:
• KiwiSaver Government contributions and employer matching will now be extended to 16- and 17-year-olds. ​
• Default Contribution Rate Increases from 3% to 4% by April 2028. ​
• Government contribution will be removed for KiwiSaver members with taxable income over $180,000 per annum. ​
• The rate of the Government contribution will be halved from $521 to $260.72. ​

The Government has announced in the Budget that the default contribution rate of employee and matching employer KiwiSaver contributions will rise from 3 to 4% of salary and wages, phased in over three years.

However, members will have the choice of remaining on the 3% rate if they choose.

In a move to save the Government money it has announced that the annual Government contribution rate will halve from $521 a year to $260.72.