payroll and ird changes from 1 april 2026: what you need to know

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

KiwiSaver Contribution Changes

The default KiwiSaver contribution rate will increase from 3% to 3.5% for both employees and employers. This change applies automatically, on 1 April 2026.

There is a temporary rate reduction available. Employees must apply for this and provide their IRD acceptance letter to their employer. Without this, the employee and employer contribution must increase to 3.50%

KiwiSaver for 16–17 Year Olds

From 1 April 2026, employees aged 16 or 17 who contribute to KiwiSaver will begin receiving employer contributions.

ACC Earners’ Levy Increase

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

Minimum Wage

Minimum wage will increase from $23.50 to $23.95 from 1 April 2026. This may also have an impact on the maximum number of hours your salaried employee can work.

What this means for an employees pay

Overall, their take‑home pay will be slightly lower due to the KiwiSaver and ACC changes.

If you have any questions regarding the changes, or need a new wage calculation please contact our wages team.

Scroll to Top