From 1 April 2026, several payroll‑related changes come into effect that may have a small impact on your pay. Below is a summary of the key updates and what they could mean for you. 

KiwiSaver Contribution Changes

The default KiwiSaver contribution rate will increase from 3% to 3.5% for both employees and employers.

You can apply to remain at the 3% rate for a period of 3 to 12 months.

This change does apply automatically from 1 April 2026, so if you take no action, your contribution rate will increase from that date.

While the change from 3 to 3.5% may slightly reduce your take‑home pay, it does mean more money going into your KiwiSaver, helping to boost your long‑term savings.

KiwiSaver for 16–17 Year Olds

From 1 April 2026, employees aged 16 or 17 who contribute to KiwiSaver will begin receiving employer contributions. This is a positive change that helps younger workers start building their retirement savings earlier.

ACC Earners’ Levy Increase

The ACC Earners’ Levy will increase from 1.67% to 1.75%. This levy is deducted automatically from your pay, and most people will notice a small increase in deductions as a result.

PAYE Income Tax

There are no changes to PAYE income tax rates from 1 April 2026.

Student Loan Repayments

Student loan repayment settings remain the same:

• Repayments continue at 12% of income over the threshold
• The annual repayment threshold remains $24,128

What This Means for Your Pay

Overall, your take‑home pay may be slightly lower due to the KiwiSaver and ACC changes. However, your long‑term KiwiSaver savings will increase, supporting your future financial wellbeing.

If you have any questions or would like to change your KiwiSaver contribution rate, please contact payroll or log in to your myIR account for more information.