New Zealand · KiwiSaver guide
KiwiSaver contributions: current rates and recent changes
For employees, the default KiwiSaver contribution rate is 3.5% of pay. The ordinary employee choices are 3.5%, 4%, 6%, 8% or 10%. A temporary rate reduction is a separate process that can keep the employee rate at 3% for 3 to 12 months; it is not the same as choosing a standard rate or taking a savings suspension.
Where to start
Employee deductions, employer contributions and government contributions are separate streams. Before changing anything, identify which stream and which mechanism you mean, because the rate, duration and side effects are different.
Key points
The employee default is 3.5%
Employees can ordinarily choose 3.5%, 4%, 6%, 8% or 10% of pay.
A temporary reduction uses 3%
It can run for 3 to 12 months and the employer can choose to match the reduced rate.
A savings suspension stops deductions
It is a different process and employer contributions usually stop unless the employment agreement says otherwise.
Government contributions are separate
They use their own contribution period, matching rate, maximum and eligibility conditions.
Current employee and employer rates
The default employee rate rose from 3% to 3.5% on 1 April 2026. IRD also states that the default employer contribution rose to 3.5%, subject to the ordinary eligibility and employment settings. A further default increase to 4% is scheduled for 1 April 2028 under the current settings.
Comparison table: scroll sideways to read all columns. With a keyboard, focus the table and use the left and right arrow keys.
| Setting | Rate or timing |
|---|---|
| Default employee rate | 3.5% of pay |
| Standard employee choices | 3.5%, 4%, 6%, 8% or 10% |
| Default employer rate | 3.5%, subject to the applicable rules and employment arrangements |
| Scheduled default from 1 April 2028 | 4% for employee and employer |
Non-employees contribute under their provider agreement rather than the employee payroll-rate table.
How the temporary 3% reduction works
An employee who wants to keep contributing at 3% can apply for a temporary rate reduction for 3 months to a year. The acceptance notice gives the approved start and end dates. When that period ends, deductions return to the applicable rate unless a further valid arrangement applies. IRD says a new reduction can be requested before the current one ends, so approved reductions can run back-to-back.
The employer can choose to match the temporary reduction. That means the employee should not assume the employer contribution will stay at 3.5% during the reduced period.
Rate choice, temporary reduction and savings suspension
These mechanisms solve different problems and should not be treated as interchangeable.
Comparison table: scroll sideways to read all columns. With a keyboard, focus the table and use the left and right arrow keys.
| Mechanism | What happens to employee deductions | Timing and employer effect |
|---|---|---|
| Choose a standard rate | Contribute 3.5%, 4%, 6%, 8% or 10% | The rate can generally be changed once every 3 months unless the employer agrees sooner. Ordinary employer rules continue. |
| Temporary rate reduction | Contribute 3% | Runs for the 3-month-to-1-year period in the acceptance notice. A further approved reduction can follow, and the employer may choose to match the reduction. |
| Savings suspension | Employee deductions stop for the approved period | For members of 12 months or more, generally 3 months to 1 year. Employer contributions usually stop unless the employment agreement says otherwise. |
A member of less than 12 months may need to show financial hardship for an early savings suspension.
Government contributions are a separate calculation
Changing or pausing employee contributions can affect whether enough eligible member contributions are made for the government contribution. The government contribution has its own period, matching rate, maximum and eligibility rules; it is not part of the employee payroll percentage.
What to check before making a change
Use the current IRD process for the mechanism you intend to use.
- Confirm whether you want a standard rate, a temporary 3% reduction or a savings suspension.
- Check the start and end dates and what your employer will contribute during that period.
- Consider the effect on government-contribution eligibility and long-term savings.
- Use licensed financial advice if the choice depends on your wider budget, debt, retirement plan or investment goals.
What to check next
- Check the current IRD mechanism and its effects before changing a setting.
- Rates and effective dates need a fresh source check before you rely on them.
- Changing contributions can affect employer and government contributions.
A useful next step
Compare contribution-change mechanisms
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Sources and dates
Information was checked on 29 September 2026. Open the current official page before relying on a rate, threshold, eligibility setting or process that may have changed.
Related guides
Understanding the KiwiSaver government contribution
Understand the annual payment, eligibility conditions and the contribution period.
Information checked: 29 September 2026
KiwiSaverReducing or pausing KiwiSaver contributions
Compare the mechanisms for changing contributions and the details to check first.
Information checked: 29 September 2026
KiwiSaverChanging your KiwiSaver provider or fund
Understand the difference between a provider move and a fund change.
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