On a low income, KiwiSaver’s employer and government contributions are a larger share of what goes in, and fixed fees are a larger share of a small balance. This page works through the contribution figures at minimum wage, the options if contributions are hard to afford, and how fees and PIR affect a smaller balance. The rules behind each are on the KiwiSaver government contribution page and in the KiwiSaver contribution rate comparison; other guides are on the KiwiSaver strategies hub.
What KiwiSaver Adds on a Low Income
Employer contributions
At the default rate (3.5% from 1 April 2026), your employer adds at least 3.5% of your gross pay, less ESCT. Opting out or taking a savings suspension generally stops it.
On a $45,000 salary at the 2026–27 rates, the employer contribution is $1,575 a year before ESCT (3.5% of $45,000), or about $1,299 after ESCT at 17.5%. How ESCT is worked out is in the KiwiSaver employer contributions guide.
The government contribution
IRD adds 25 cents for every dollar you contribute between 1 July and 30 June, up to $260.72, which takes $1,042.86 of your own contributions (about $20.06 a week). The amount is the same in dollars at any eligible income.
A lower PIR
If your income is $15,600 or less, your PIR is 10.5%. If it’s $53,500 or less (and $78,100 or less combined with PIE income), it’s 17.5%. A larger share of your returns stays in your account than for someone on the 28% PIR, but only if your provider has the right rate: see KiwiSaver PIR rates explained.
The Full Government Contribution at Minimum Wage
- $1,042.86/year: your contributions needed for the full $260.72
- $20.06/week or $86.90/month: the weekly and monthly equivalents
Full time at the adult minimum wage ($23.95/hour from 1 April 2026, 40 hours a week = $49,816/year):
- 3.5% employee contribution = $1,744/year, against the $1,042.86 needed
20 hours a week at the adult minimum wage ($24,908/year):
- 3.5% employee contribution = $871.78/year, which earns a government contribution of $217.95
- A voluntary contribution of $171.08 before 30 June brings the year’s contributions to $1,042.86 and the government contribution to the full $260.72
How to make a voluntary contribution is on the KiwiSaver voluntary contributions page.
If Contributions Are Hard to Afford
- Temporary rate reduction: you can apply to IRD to contribute 3% instead of the default for 3 to 12 months (KiwiSaver savings suspension and temporary rate reduction).
- Savings suspension: stops your contributions for a set period, and generally your employer’s too.
Contributing above the default works the other way: on a $45,000 salary, each extra half a percentage point is $225 a year more from your pay, with no extra employer or government money, invested and locked in until 65. The trade-off against high-interest debt or an emergency fund is a cash-flow question: before 65, KiwiSaver money comes out only in limited cases such as a first home or significant financial hardship.
Fees on a Small Balance
Fees take a larger share of a smaller balance, and flat member fees most of all. As an illustration, a $36 a year flat fee is 1.2% of a $3,000 balance, on top of the fund’s percentage fee, but 0.036% of a $100,000 balance. Percentage fees cost the same share at any balance. How each kind of fee is charged is in the KiwiSaver fees explained guide, and each provider’s fees are set out in the KiwiSaver fund fees comparison.
Working Multiple Jobs
If you work two part-time jobs, both employers must make KiwiSaver contributions (employer minimum 3.5% from each job, from 1 April 2026). You’ll also have employee contributions deducted from each pay.
Contributions from all your employers go to the same KiwiSaver account (your IRD number links them; see KiwiSaver with more than one employer). Having multiple employers contributing to one account is normal.
KiwiSaver and Working for Families
KiwiSaver contributions don’t reduce the family scheme income used for Working for Families, and the government contribution isn’t counted as income. The KiwiSaver and Working for Families guide sets out how each part of KiwiSaver is treated.
Settings Worth Checking
- That you’re enrolled and contributing at least 3.5% (visible in myIR)
- That your employer’s contributions are arriving (on your payslip or in myIR)
- Whether your contributions for the year will reach $1,042.86 by 30 June
- That your PIR matches your income (10.5% or 17.5% on lower incomes)
- What fees your fund charges, including any flat member fee
Where to check the latest data
Rates, fees and returns change often. Before deciding, check current figures yourself:
- Sorted Smart Investor: compares fees, returns and risk levels of KiwiSaver and managed funds.
- Disclose register: holds each fund's product disclosure statement and quarterly fund updates.
- The provider's latest fund update: gives the fund's current fees, returns and holdings.