KiwiSaver is New Zealand’s voluntary work-based savings scheme. If you’re an employee and a member, three kinds of money go into your account: your own contributions from your pay, your employer’s contribution on top of your pay, and a yearly government contribution if you put in enough.
The 2026–27 tax year brought a rise in the default contribution rate for employees and employers. This guide explains the new default rate, what your employer must pay and the tax taken from it, and how much you need to contribute to get the full government contribution. The KiwiSaver calculator works out each amount for your salary.
What changed on 1 April 2026
The default contribution rate for employees rose to 3.5% for all paydays from 1 April 2026, and the compulsory employer contribution rose to 3.5% with it. If you were on the old default, the change happened automatically; you didn’t need to do anything.Inland Revenue
Two other changes came with it:
- A temporary rate reduction lets you keep contributing at 3%, the old default, if the higher rate is hard to afford. Your employer can choose to match that lower rate.
- Younger members get employer contributions. Employers must now contribute for members from age 16, the same age at which the government contribution starts.
The default rate for both employees and employers is set to rise again from 1 April 2028, so the rate you pay now is a step on the way, not the end point.
Choosing your contribution rate
As an employee you can contribute 3.5%, 4%, 6%, 8% or 10% of your before-tax pay. If you don’t choose, you’re on the default. Before-tax pay includes overtime, bonuses, commission and most allowances, so your deduction rises on a pay with extra hours.Inland Revenue
On a $70,000 salary paid fortnightly, each rate works out like this:
| Your rate | Deducted a fortnight | Deducted a year | Take-home a fortnight |
|---|---|---|---|
| 3% (temporary rate reduction) | $80.76 | $2,100 | $2,055.97 |
| 3.5% (default) | $94.23 | $2,450 | $2,042.50 |
| 4% | $107.69 | $2,800 | $2,029.04 |
| 6% | $161.53 | $4,200 | $1,975.20 |
| 8% | $215.38 | $5,600 | $1,921.35 |
| 10% | $269.23 | $7,000 | $1,867.50 |
Your contribution comes out of your gross pay, but you get no tax relief on it: PAYE is worked out on your full pay either way. So a higher rate lowers your take-home pay by exactly the extra amount saved.
A temporary rate reduction lasts for a set period of up to a year, and you apply for it in myIR. When it ends, your employer goes back to deducting the default rate unless you apply again.Inland Revenue If money is tight for longer, a savings suspension stops your contributions altogether, but your employer then doesn’t have to contribute either.
What your employer pays
If you contribute from your pay, your employer must contribute at least 3.5% of your gross pay on top of your salary. It mustn’t come out of your take-home pay, even if you agreed a total remuneration package. The exception is an employment agreement negotiated so that the compulsory contribution is offset against your gross pay; your take-home pay is then lower.Inland Revenue
Your employer doesn’t have to contribute if you’re under 16, if you can already withdraw your savings, if you’re not contributing from your pay, or if they already pay into another eligible scheme for you. Some employers pay more than the minimum, either as a standard benefit or to match a higher rate you choose. The calculator lets you enter your employer’s actual rate.
ESCT: the tax on your employer’s contribution
Your employer’s contribution is taxed before it reaches your account. This tax is employer superannuation contribution tax (ESCT), and the rate depends on your “ESCT rate threshold amount”: your salary plus your employer’s gross contributions, normally for the previous tax year.Inland Revenue
| Salary plus employer contributions | ESCT rate |
|---|---|
| Up to $18,720 | 10.5% |
| Over $18,720, up to $64,200 | 17.5% |
| Over $64,200, up to $93,720 | 30% |
| Over $93,720, up to $216,000 | 33% |
| Over $216,000 | 39% |
The thresholds are higher than the income tax thresholds, so check the right table. On a $70,000 salary, the ESCT rate is 30%. Your employer’s contribution of $2,450 a year loses $733 in ESCT, so $1,717 reaches your account. On $60,000 the rate is 17.5%, so a larger share of the contribution gets through. Your employer deducts ESCT and pays it to Inland Revenue with its payday filing; it doesn’t appear as a deduction from your own pay.Inland Revenue
The government contribution
If you’re contributing, the government adds $0.25 for every dollar you put in between 1 July and 30 June, up to $260.72 a year. To get the full amount you need to contribute at least $1,042.86 of your own money in that year. Your employer’s contributions don’t count towards it.Inland Revenue
To qualify you must be aged 16 or over, under the age at which you can withdraw your savings (65), living mainly in New Zealand, and have a taxable income of $180,000 or less. You don’t need to claim it: your provider applies after 30 June, and it can take until the end of August to appear in your account.Inland Revenue
How it works out at different salaries, at the default rate:
- $30,000 a year. Your deductions come to $1,050 a year, just enough for the full $260.72.
- $20,000 a year, working part-time. Deductions of $700 earn a government contribution of $174.98. Paying an extra $400 directly to your provider before 30 June lifts it to $260.72.
- $190,000 a year. Income is over the limit, so the government contribution is $0.00.
Because the government year runs from 1 July to 30 June, check your contributions in myIR or with your provider in May or June. If you’ve joined, turned 16 or stopped working part-way through the year, a voluntary top-up before 30 June can make up the difference.
Everything that goes in each year
Here is the full picture for a $70,000 salary at the default rate, with the minimum employer contribution:
| Line | Per year |
|---|---|
| Your contributions (3.5%) | $2,450 |
| Employer contribution (3.5%) | $2,450 |
| Less ESCT at 30% | -$733 |
| Government contribution | $261 |
| Total into KiwiSaver | $4,427 |
In total, $4,427 goes into the account in a year, of which only $2,450 comes from your pay. At 6%, the total rises to $6,177, because your employer’s minimum and the government contribution stay the same while your own share grows.
The figures leave out investment returns and fund fees. The calculator can project a balance over a number of years, but it adds no return unless you enter one, so by default it shows only what has been contributed. Your provider can show you your fund’s past returns.
Common questions
Do I pay KiwiSaver on a bonus or overtime? Yes. Your rate applies to your before-tax pay, which includes bonuses, commission, overtime and most allowances. It doesn’t include redundancy payments or a retiring allowance.
What if I have two jobs? Each employer deducts your rate from the pay it gives you and, if you contribute, makes its own employer contribution. If you apply for a temporary rate reduction, you can choose which employers to give the notice to.Inland Revenue
Can I stop contributing? You can apply for a savings suspension, which pauses your deductions. But your employer doesn’t have to contribute while you’re on one, and with no contributions of your own there is no government contribution either, so you give up both.
What happens at 65? Once you can withdraw your savings, your employer no longer has to contribute and the government contribution stops.
If you aren’t an employee
If you’re self-employed or not working, there is no employer contribution, but you can still pay into KiwiSaver directly to your provider or through Inland Revenue at any time. Voluntary payments are locked in, like the rest of your savings, until you can withdraw them. Paying at least $1,042.86 between 1 July and 30 June still earns the full government contribution, as long as you meet the other conditions.Inland Revenue
Work out your contributions
Enter your salary, rate and your employer’s rate below. The ESCT rate is worked out from your pay unless you choose one.
$4,427
- Your contributions per year
- $2,450
- Your deduction per pay
- $94.23
- Employer contribution (before ESCT)
- $2,450
- ESCT
- $733
- Employer contribution after ESCT
- $1,717
- Government contribution
- $260.72
- ESCT rate
- 30%
- Projected balance
- $64,275
- The government contribution is worked out on the year from 1 July to 30 June and is paid into your account after 30 June; it is reduced if you join, turn 16 or reach 65 part-way through that year.
- Contributions follow Inland Revenue's payroll rules for each pay: your deduction and the employer contribution are truncated to cents, and ESCT is charged on the whole dollars of the employer contribution.
- Projection: 0% a year (your assumption), the same pay and contributions every year, government contribution included. Real returns vary and can be negative.
Into your KiwiSaver: $4,427 per year (2026–27)
Show the breakdown
| Line | Per year |
|---|---|
| Your contributions (3.5%) | $2,450 |
| Employer contribution (3.5%) | $2,450 |
| Less ESCT at 30% | −$733 |
| Government contribution | $261 |
| Total into KiwiSaver | $4,427 |
- You$2,45048%
- Employer (after ESCT)$1,71733%
- Government$2615%
- ESCT (to Inland Revenue)$73314%
To see how KiwiSaver fits with PAYE and the ACC levy in each pay, use the PAYE calculator, or see take-home pay at common salaries with and without KiwiSaver. The New Zealand take-home pay guide explains every line on a payslip.
