KiwiSaver Contribution Rates Guide
How KiwiSaver contribution rates work in New Zealand — employee options from 3% to 10%, employer minimum, government contributions, and savings suspensions.
Published 22 March 2026
KiwiSaver is New Zealand’s voluntary workplace retirement savings scheme. Despite being called “voluntary,” most employees are automatically enrolled when they start a new job. Understanding how contributions work — and what your employer and the government add — can make a significant difference to your retirement savings. Here’s a complete guide to KiwiSaver contribution rates for 2025-26.
Employee Contribution Rates
As an employee, you choose how much of your gross pay you contribute to KiwiSaver. You can choose from five rates:
| Rate | Per $1,000 of gross pay |
|---|---|
| 3% | $30 |
| 4% | $40 |
| 6% | $60 |
| 8% | $80 |
| 10% | $100 |
The default rate when you’re automatically enrolled is 3%. You can change your rate at any time by notifying your employer in writing. Changes take effect from your next pay period (or as soon as practicable).
Important: Your contribution is calculated on your gross pay — before income tax and other deductions. This means your KiwiSaver contribution reduces your take-home pay more than you might initially expect when you compare it to your net pay.
Employer Contributions
Your employer is required to contribute a minimum of 3% of your gross pay into your KiwiSaver account. This is on top of your wages — it doesn’t come out of your salary. Some employers choose to contribute more than 3%, though this is less common.
Example — $75,000 salary at 4% employee / 3% employer:
- Employee contributes: $75,000 × 4% = $3,000 per year
- Employer contributes: $75,000 × 3% = $2,250 per year
- Total going into KiwiSaver: $5,250 per year
Note: Employer contributions are subject to Employer Superannuation Contribution Tax (ESCT). The rate of ESCT depends on your income and means the amount your employer contributes that actually reaches your KiwiSaver account is slightly less than the stated 3% — typically around 2.4% to 2.7% after ESCT. The gross contribution (before ESCT) is what you see advertised as “employer 3%.”
Government Contribution (Member Tax Credit)
The government also contributes to your KiwiSaver account — up to a maximum of $521.43 per year. This is sometimes called the Member Tax Credit (MTC).
To receive the maximum government contribution:
- You must be a KiwiSaver member aged 18 or over
- You must not be eligible to withdraw (i.e., not yet reached 65 or bought your first home)
- You must contribute at least $1,042.86 to your KiwiSaver account in a year
The government then matches 50 cents for every dollar you contribute, up to the $521.43 maximum. If you contribute less than $1,042.86, your government contribution is proportionally reduced.
Example — part-year contribution:
If you only contributed $600 in a year: Government contribution = $600 × 50% = $300
The KiwiSaver year for government contributions runs 1 July to 30 June, not the standard NZ tax year.
Worked Example: Full KiwiSaver Picture
Let’s look at a complete example for someone earning $60,000 per year contributing at the 4% rate:
| Component | Annual Amount |
|---|---|
| Employee contribution (4%) | $2,400 |
| Employer contribution (3% gross, ~2.6% after ESCT) | ~$1,560 net to account |
| Government contribution (if eligible) | $521.43 |
| Total to KiwiSaver | ~$4,481 |
Over a working career, the combination of employer contributions and the government contribution can add significantly to your retirement savings.
Savings Suspension (Contributions Holiday)
If you’re struggling financially, you can apply to IRD for a savings suspension (formerly called a “contributions holiday”). This allows you to pause your KiwiSaver contributions for a period of time.
Key rules:
- You must have been a KiwiSaver member for at least 12 months before applying for a suspension (with some hardship exceptions)
- Suspensions can be granted for between 3 months and 1 year
- You can reapply to extend the suspension at the end of the period
- During a suspension, employer contributions also stop
To apply, submit a “KS6 Savings Suspension” form to IRD via myIR.
Opting Out
If you start a new job, you are automatically enrolled in KiwiSaver. However, you have a 2–8 week window to opt out if you don’t wish to participate. After this window closes, you’re locked in until age 65 (with some exceptions for significant financial hardship or serious illness).
If you’ve been opted out for more than 12 months and then re-enrol (either voluntarily or starting a new job), the opt-out window restarts.
Choosing Your Contribution Rate
Deciding which contribution rate to choose involves balancing competing priorities:
Higher rates make sense if:
- You’re focused on building retirement savings
- You want to take advantage of the full government contribution (you’ll hit the $1,042.86 threshold at 3% of ~$34,800 salary)
- You have room in your budget after living expenses
- You’re planning to use KiwiSaver for a first home withdrawal
Lower rates (or savings suspension) may make sense if:
- You have high-interest debt to pay down
- You’re saving for a non-KiwiSaver goal (e.g., a deposit outside first home schemes)
- You’re in financial hardship
- You have other investment vehicles (property, shares) already in place
First Home Withdrawal
One of KiwiSaver’s most valuable features is the first home withdrawal. If you’ve been a KiwiSaver member for at least three years, you can withdraw most of your KiwiSaver balance (minus a minimum $1,000) to put toward buying your first home. Both employee contributions, employer contributions, and any investment returns can be withdrawn — though the government contributions (Member Tax Credits) cannot.
The higher your contribution rate, the more you’ll accumulate for this purpose.
KiwiSaver After Age 65
From age 65, you can withdraw all your KiwiSaver savings — either as a lump sum or in regular withdrawals, depending on your provider. You’re no longer eligible for the government contribution after 65. You can choose to stay in KiwiSaver and continue contributing, but there’s no longer any compulsion or employer matching.
Summary
- Employee rates: 3%, 4%, 6%, 8%, or 10% of gross pay — your choice
- Default rate on auto-enrolment is 3%
- Employer minimum: 3% of your gross pay (subject to ESCT)
- Government contributes up to $521.43/year if you contribute at least $1,042.86
- Savings suspensions available after 12 months membership
- KiwiSaver builds up funds for retirement and first home purchase
Use the KiwiSaver Calculator to model how different contribution rates affect your take-home pay and long-term savings.