KiwiSaver 3% vs 3.5% 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 3.5% default.
KiwiSaver rate changes — 1 April 2026
Employee default
3% → 3.5%
Employer minimum
3% → 3.5%
Temporary reduction
92 days to 1 year
Further rise
1 April 2028
KiwiSaver contributions are calculated on your gross salary before PAYE.
What changed on 1 April 2026
Your employer now contributes 3.5% instead of 3% — that's an extra $350 per year into your KiwiSaver at this income, no matter which rate you choose.
The default employee rate also rose from 3% to 3.5%. You were moved to 3.5% automatically unless you applied for a temporary reduction back to 3% (92 days to 1 year).
Temporary rate reduction (92 days to 1 year)
Automatic from 1 Apr 2026 unless you opt out
Voluntary election for faster savings
Tight on cash right now? Apply for a temporary reduction to 3% for 92 days to 1 year. You still get the extra 0.5% employer contribution. Renew before the period ends to stay at 3% longer.
Can afford the extra $350 a year? Stay on the new 3.5% default. Over 30 years, the combined extra 0.5% employee + 0.5% employer adds tens of thousands to your retirement balance — and you lock in the higher employer match.
Chasing retirement goals? Voluntarily elect 6%, 8%, or 10%. The employer contribution is capped at 3.5% in 2026-27 regardless of your rate, but the higher personal contribution compounds over time.
Take-home deltas shown here are pre-PAYE gross deductions. For net-of-tax dollars, use the take-home pay calculator.
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.
Edit inputs ↑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 3.5%, and the employer minimum rose from 3% to 3.5%. Stage 2 on 1 April 2028 lifts both the default employee rate and the employer minimum again from 3.5% to 4%.
If you were on the old 3% rate your deductions automatically jumped to 3.5% on 1 April 2026. You can apply to Inland Revenue for a temporary rate reduction back to 3% for a period of 92 days to 1 year. 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 3.5%. 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 7.0%. That's a 1.0% lift in combined contribution from day one.
Should you stay at 3% or move to 3.5%?
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 3.5% 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 3.5% on 1 April 2026?
Yes. The default KiwiSaver employee contribution rate rose from 3% to 3.5% on 1 April 2026. If you were contributing at 3%, your deductions automatically moved to 3.5% 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 92 days to 1 year. 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% (both default employee and employer minimum) 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 0.5% employee contribution noticeably reduces take-home pay. Applying for a temporary reduction of 92 days to 1 year lets you keep the higher employer match (3.5%) while restoring the prior take-home pay. If you can afford the difference, staying on 3.5% 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?
Both the default employee rate and the employer minimum rise from 3.5% to 4% on 1 April 2028. 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 prevailing default rate.
Do 16- and 17-year-olds now get KiwiSaver?
Yes, in two stages. From 1 July 2025, 16- and 17-year-old KiwiSaver members became eligible for the government contribution (Member Tax Credit) for the first time — part of the same Budget 2025 package that halved the match rate. Employer contributions for 16- and 17-year-olds became compulsory later, from 1 April 2026 — the same date as this default rate rise.
Sources
Related Calculators
Reflects Budget 2025 changes effective 1 April 2026.