KiwiSaver 3% vs 4% Calculator — New Default From 1 April 2026
The Budget 2025 rate changes took effect on 1 April 2026. This calculator shows exactly how much extra your employer now contributes (at 3.5%) and whether to stay on 3% via a temporary reduction or accept the new 4% default.
KiwiSaver rate changes — 1 April 2026
Employee default
3% → 4%
Employer minimum
3% → 3.5%
Temporary reduction
3–12 months
Further rise
1 April 2028
KiwiSaver contributions are calculated on your gross salary before PAYE.
Results use the 2026-27 employer minimum contribution of 3.5% (effective 1 April 2026) and the 2025-26 rate of 3% as the baseline.
How the 1 April 2026 rate change works
Budget 2025 set out a two-stage increase to default KiwiSaver contributions. Stage 1 took effect on 1 April 2026: the default employee rate rose from 3% to 4%, and the employer minimum rose from 3% to 3.5%. Stage 2 on 1 April 2028 lifts the employer minimum again to 4% and makes 4% the permanent default employee rate.
If you were on the old 3% rate your deductions automatically jumped to 4% on 1 April 2026. You can apply to Inland Revenue for a temporary rate reduction back to 3% for a period of 3 to 12 months. You need to renew the reduction before it ends — it doesn't persist indefinitely. Crucially, the reduction only affects your own contribution; your employer still pays the new 3.5% minimum.
The extra 0.5% of employer contribution is roughly an extra $5 per $1,000 of salary going into your KiwiSaver each year. On a $70,000 salary that's $350 a year you didn't have before — regardless of whether you stay on 3% or move to 4%. Employer superannuation contribution tax (ESCT) still applies at your marginal rate, so the net-into-account amount is slightly less.
Under the old rules (pre-1 April 2026), the default 3% + 3% combination put 6% of gross salary into KiwiSaver each year. Under the new default, it's 7.5%. That's a 1.5% lift in combined contribution from day one.
Should you stay at 3% or move to 4%?
Apply for a temporary reduction if: your monthly budget is already tight, you have higher-interest debt (credit card, personal loan) to clear first, or you're saving aggressively for a first-home deposit using KiwiSaver withdrawal rules and need the extra cash on hand.
Stay on 4% default if: you can absorb the take-home pay reduction without stress, you're over 40 and behind on retirement projections, or your employer matches above 3.5% for higher employee contributions (some large employers match 4% or 5% — ask HR).
Consider going higher (6% / 8% / 10%) if: you're chasing a retirement target, you're in a lower tax bracket (so the ESCT penalty is smaller), or you're using KiwiSaver as a forced-saving tool because unrestricted savings disappear into everyday spending.
Frequently asked questions
Did KiwiSaver contributions go up to 4% on 1 April 2026?
Yes. The default KiwiSaver employee contribution rate rose from 3% to 4% on 1 April 2026. If you were contributing at 3%, your deductions automatically moved to 4% unless you applied to Inland Revenue for a temporary rate reduction. The employer minimum also rose from 3% to 3.5%.
Can I stay at 3% after 1 April 2026?
Yes, but not permanently. You can apply to Inland Revenue for a temporary rate reduction back to 3% for between 3 and 12 months. You can renew the reduction before it ends. Your employer contribution stays at the new 3.5% minimum regardless of your chosen rate. A further rise to 4% employee default is scheduled for 1 April 2028.
How much more is my employer putting in at 3.5%?
The extra 0.5% of your gross salary. On $70,000 that's an extra $350 per year into your KiwiSaver at no cost to you. The extra employer contribution is still taxed as employer superannuation contribution tax (ESCT) at your marginal rate, so the net-in-account figure depends on your income band.
Who should apply for the temporary 3% rate reduction?
If your cash flow is tight, the extra 1.0% employee contribution noticeably reduces take-home pay. Applying for a 3–12 month temporary reduction lets you keep the higher employer match (3.5%) while restoring the prior take-home pay. If you can afford the difference, staying on 4% locks in more retirement savings and compound growth — the default exists because KiwiSaver balances have lagged Australian super.
Does the new rate affect ESCT or government contribution eligibility?
ESCT is unchanged — your employer pays ESCT on their contribution at your marginal rate. The government contribution (Member Tax Credit) rules are separate: from 1 July 2025 the match halved to 25 cents per $1 up to $260.72 a year, and an income cap of $180,000 applies. Use the KiwiSaver government contribution calculator to see what you qualify for.
What happens on 1 April 2028?
The default employee rate stays at 4% but the employer minimum rises again from 3.5% to 4%. Employees who are still on the temporary 3% reduction will need to plan for when their reduction ends — Inland Revenue will auto-revert them to the 4% default.
Do 16- and 17-year-olds now get KiwiSaver?
Yes. From 1 July 2025 employers must make KiwiSaver contributions for 16- and 17-year-old employees who have joined KiwiSaver. This was part of the same Budget 2025 package that halved the government contribution.
Sources
Related Calculators
Reflects Budget 2025 changes effective 1 April 2026. Last updated April 2026.