KiwiSaver Changes Are Now Live: Here’s What Employers and Employees Need to Know

The new KiwiSaver rules are officially in effect as of 1 July 2025 — and they bring some big changes for employees, employers, and young savers entering the workforce.

Whether you’re reviewing your own contributions or responsible for a team, now is the time to make sure you’re across the updates and taking action where needed.

Here’s what’s changed, what it means, and what you should be doing now.

🔍 What’s Changed?

Government Contributions Have Been Halved

Employees will now receive 25c per dollar contributed (instead of 50c), with the annual cap reduced to $260.72.

If you earn over $180,000, you’ll no longer qualify for the Government contribution at all.

KiwiSaver Now Includes 16–17-Year-Olds

Young employees aged 16 and 17 now qualify for employer and Government contributions — a win for early financial habits.

Default Contribution Rates Are Set to Rise

While the first increase won’t happen until April 2026, the phased rise in default KiwiSaver rates is locked in:

  • 3.5% in April 2026

  • 4% in April 2028

You can still opt to reduce your contribution to 3% if needed — but you’ll be automatically reset to the default after 12 months unless you opt back down.

💡 What It Means (In Real Life)

For most Kiwis, KiwiSaver is one of the easiest ways to build up long-term savings — and these updates are all about strengthening that.

But with less Government support and higher default rates coming, it’s more important than ever to:

  • Know your current contribution rate

  • Make sure your KiwiSaver fund still fits your goals

  • Stay proactive about helping your team understand their options

What to Do Now

Employers:

  • Check your payroll is aligned with the new rules

  • Make sure new employees (especially young ones) are aware of the changes

  • Start the conversation early around default contributions, opt-out options, and fund choices

Employees:

  • Review your contribution rate — 3% is still available, but 4% is on the horizon

  • Check whether you’re still eligible for Government contributions

  • Confirm your fund matches your long-term goals

💬 Need Support?

We’re here to help. If you’re unsure how these changes affect your business, your team, or your next hire — get in touch. At People Passion, we keep things simple, clear, and always people-first.

This article provides general guidance only. For personalised KiwiSaver or financial advice, we recommend speaking with your provider or a qualified adviser.

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