When you join KiwiSaver, one of the first decisions you make is how much to contribute. New Zealand employees can choose from five contribution rates: 3.5%, 4%, 6%, 8%, or 10% of your gross (before-tax) salary. The minimum rose from 3% to 3.5% on 1 April 2026, with a further rise to 4% scheduled for 1 April 2028 (IRD, KiwiSaver changes). These contributions are deducted from every pay cheque and forwarded to your KiwiSaver provider via Inland Revenue.
This guide, part of the KiwiSaver contributions section, explains what each rate means in dollar terms, how employer and government contributions layer on top, and how to change your rate.
For the broader picture of how KiwiSaver works, see the KiwiSaver Complete Guide NZ. For a comparison of all five rates side-by-side, see KiwiSaver 3.5% vs 4% vs 6% vs 8% vs 10%.
The Five KiwiSaver Contribution Rates
New Zealand employees can choose one of these five rates:
| Rate | Weekly cost (on $60k salary) | Annual contribution | Fortnightly cost |
|---|---|---|---|
| 3.5% | $40.38 | $2,100 | $80.77 |
| 4% | $46.15 | $2,400 | $92.31 |
| 6% | $69.23 | $3,600 | $138.46 |
| 8% | $92.31 | $4,800 | $184.62 |
| 10% | $115.38 | $6,000 | $230.77 |
Based on a $60,000 gross annual salary. Contributions are calculated on gross pay before PAYE is deducted.
Default rate: If you start a new job and do not nominate a rate, your employer deducts the default rate of 3.5% (raised from 3% on 1 April 2026).
How Contributions Are Calculated
KiwiSaver contributions are calculated on your gross pay, meaning your before-tax salary or wages including bonuses, commission and overtime. This includes:
- Regular salary and wages
- Holiday pay
- Sick pay
- Allowances, overtime, bonuses and commission
It excludes (in most circumstances):
- Redundancy payments
- The value of board or lodging, or an allowance instead of it
- Free or discounted shares received under an employee share scheme
Example: You earn $80,000/year and contribute at 4%.
- Annual contribution = $80,000 × 4% = $3,200
- Weekly contribution = $3,200 ÷ 52 = $61.54
Your employer adds at least another 3.5% on top: $80,000 × 3.5% = $2,800 gross (before ESCT).
What Your Employer Adds
If you're aged 16 or over and under 65, in KiwiSaver and contributing from your pay, your employer must contribute at least 3.5% of your gross pay (unless you're on a temporary rate reduction or in a defined benefit scheme), less employer superannuation contribution tax (ESCT). The employer KiwiSaver contributions guide covers who qualifies, how ESCT is worked out and the net amount at each salary.
What the Government Adds
For each KiwiSaver year (1 July to 30 June), Inland Revenue pays a government contribution of up to $260.72: 25 cents per dollar of your own contributions, with the full amount reached at $1,042.86. The KiwiSaver government contribution guide sets out the age, residence and $180,000 income conditions.
Total Contributions at Each Rate (3 Sources Combined)
Here is the total annual amount flowing into your KiwiSaver at each contribution rate, combining your contribution, the employer’s net contribution, and the government contribution:
Assumptions: $60,000 salary, employer contributes 3.5% ($2,100 gross), ESCT at 17.5%, full government contribution received.
| Your rate | Your contribution | Employer (net) | Govt contribution | Total into KiwiSaver |
|---|---|---|---|---|
| 3.5% | $2,100 | $1,732.50 | $260.72 | $4,093.22 |
| 4% | $2,400 | $1,732.50 | $260.72 | $4,393.22 |
| 6% | $3,600 | $1,732.50 | $260.72 | $5,593.22 |
| 8% | $4,800 | $1,732.50 | $260.72 | $6,793.22 |
| 10% | $6,000 | $1,732.50 | $260.72 | $7,993.22 |
The employer and government amounts stay the same at every rate, because a $60,000 salary at 3.5% already meets the $1,042.86 threshold for the full government contribution. The only variable is how much you personally contribute.
Choosing a Rate
What each rate costs in take-home pay, what it adds up to over time, and how high-interest debt, an emergency fund or a first-home goal interact with a higher rate are set out in the KiwiSaver contribution rate comparison. Some employers contribute more than the 3.5% minimum or match a higher employee rate; the employment agreement sets this out.
How to Change Your Contribution Rate
You can change your rate to 3.5%, 4%, 6%, 8% or 10% in three ways, according to Inland Revenue. You need your IRD number and the rate you want.
Through your employer (no myIR needed): give your employer written notice, either an email or letter, or a completed KiwiSaver deduction form (KS2).
Through myIR: log in, select “Change KiwiSaver Contribution Rate” under the “more” menu of your KiwiSaver account, then complete and submit the form. Inland Revenue notifies your employer of the new rate.
Through your KiwiSaver provider: contact your provider; Inland Revenue then notifies your employer.
When the new rate takes effect: once your employer receives the notice, from you or from Inland Revenue, it changes your rate starting from the next pay it calculates.
How often you can change: contribution rates can be changed once every 3 months, unless your employer agrees to a shorter timeframe (Inland Revenue, Changing my KiwiSaver contribution rate).
To go below 3.5% or stop contributing, you apply to Inland Revenue for a temporary rate reduction to 3% or a savings suspension; both are explained in the KiwiSaver contribution holiday guide.
Contribution Rates and a First-Home Withdrawal
A higher contribution rate builds the balance available for a KiwiSaver first-home withdrawal faster. On a $60,000 salary, contributing 8% instead of 3.5% adds $2,700 a year of your own money, or $13,500 over five years before investment returns, and reduces take-home pay by $51.92 a week. The employer minimum stays at 3.5% whichever rate you choose. The contribution rate comparison shows projected balances at each rate over longer periods.
Contribution Rates for Self-Employed and Contractors
If you are self-employed or a contractor, you do not have employer contributions deducted automatically. You choose how much to contribute and pay it to your provider directly or through Inland Revenue.
- You decide how much to pay, and IRD says voluntary payments to your KiwiSaver account can be made at any time
- You do not receive employer contributions (there is no employer)
- You can still receive the government contribution if you contribute at least $1,042.86/year
- You can pay your contributions directly to your provider or through Inland Revenue
For full guidance, see the KiwiSaver for self-employed guide.
What Counts as Gross Pay for KiwiSaver?
The contribution calculation can trip people up. The key concept is gross pay for KiwiSaver, meaning total salary or wages before tax, including overtime, bonuses and commission:
| Payment type | KiwiSaver deducted? |
|---|---|
| Regular salary / wages | ✅ Yes |
| Holiday pay (paid leave) | ✅ Yes |
| Paid sick leave | ✅ Yes |
| Statutory day (Mondayised) pay | ✅ Yes |
| Redundancy pay | ❌ No |
| Retiring allowance | ❌ No |
| Board or lodging provided by the employer | ❌ No |
| Commission | ✅ Yes |
| Overtime | ✅ Yes |
| Bonus payments | ✅ Yes, see bonus payments guide |
If you are unsure whether a payment should have KiwiSaver deducted, check with your employer or IRD.
Contribution Rates During Special Circumstances
Parental leave, unpaid leave and redundancy change what is deducted from your pay or whether you can withdraw: see KiwiSaver contributions on parental leave, KiwiSaver on unpaid leave and KiwiSaver and redundancy. Your employer’s obligations in these situations are in the employer contributions guide and the wider KiwiSaver rules for employers.
Contribution Rates and PIE Tax Advantage
One often-overlooked benefit of contributing more to KiwiSaver is the PIE tax advantage. Investment returns inside your KiwiSaver fund are taxed at your prescribed investor rate (PIR) (maximum 28%), not your marginal income tax rate (which can be up to 39% for incomes over $180,000).
For a top-bracket earner, returns inside KiwiSaver are taxed at 28% at most, against 39% for income tax on income over $180,000. See the KiwiSaver tax guide.
Frequently Asked Questions
What is the minimum KiwiSaver contribution rate?
The minimum is 3.5% of your gross pay (raised from 3% on 1 April 2026). You cannot contribute less than 3.5% through the normal payroll system without applying. You can apply to IRD for a temporary reduction to 3% for 3–12 months, or, once you have been a member for 12 months (earlier only with financial hardship), apply for a savings suspension to contribute nothing.
Can I contribute more than 10%?
You cannot elect a rate higher than 10% through payroll. However, you can make extra voluntary contributions to your provider on top of your payroll rate. See voluntary contributions.
Does my contribution rate affect my tax?
No. KiwiSaver contributions are not tax-deductible from income tax. They are a percentage of your before-tax pay, but PAYE is still worked out on your full gross pay, so they do not reduce your taxable income. Investment returns are taxed inside the fund: in a PIE scheme at your PIR rather than your marginal rate, and KiwiSaver withdrawals are not taxed.
What happens if I don’t choose a rate?
You default to 3.5%, the minimum rate (raised from 3% on 1 April 2026). You can change it once every 3 months, or sooner if your employer agrees.
Can my employer pay a higher rate than 3.5%?
Yes. Employers can make voluntary contributions above the 3.5% compulsory minimum, and some match a higher employee rate. Your employment agreement or HR team can confirm whether yours does.
Do contributions stop automatically if I leave a job?
Yes. Once you leave a job, payroll deductions stop. Your balance stays invested with your provider. If you start a new job and are already a KiwiSaver member, you are not automatically enrolled again; your new employer starts deductions from your first pay at the default rate unless you give them a different rate. You can also make voluntary contributions directly to your provider at any time between jobs.
Can I pause contributions?
Yes, via a savings suspension. You must have been a KiwiSaver member for at least 12 months, unless you ask early and show financial hardship. Suspensions last up to 12 months and are renewable. See the contribution holiday guide.
At what age do employer contributions stop?
Compulsory employer contributions apply to employees aged 16 or over and under 65 (16 and 17 year olds became eligible on 1 April 2026). From 65, you can still contribute personally but the employer obligation ends.
Key Takeaways
- Five rates are available: 3.5%, 4%, 6%, 8%, and 10% — all calculated on gross pay (the minimum rose from 3% to 3.5% on 1 April 2026; a further rise to 4% is scheduled for 1 April 2028)
- The default rate if you do not choose is 3.5%
- Your employer must add at least 3.5% on top, less ESCT
- The government adds up to $260.72/year as the government contribution (requires $1,042.86 in personal contributions; income over $180,000 is no longer eligible, from 1 July 2025)
- You can change your rate once every 3 months (sooner if your employer agrees) through your employer, myIR or your provider
For advice specific to your situation, consider speaking with a licensed financial adviser. The FMA’s financial adviser register and sorted.org.nz can help you find one.