Employer KiwiSaver Subsidy Rates (Effective 1 April 2026)

From 1 April 2026, changes to KiwiSaver rules affect how employer contributions (subsidies) are determined and applied. This guide explains how your selected subsidy rate interacts with employee contribution rates and system behaviour.

note

As at 1 April 2026, PICMI automatically upgraded all KiwiSaver rate questions and all Integration configurations.

Key Principles

1. Default Employer Contribution: 3.5%

• The standard employer contribution rate is now 3.5%
• This applies in most situations automatically

2. Optional Reduced Rate: 3% (By Agreement Only)

• A 3% employer rate is no longer the default
• It is only allowed if:
  • The employee is contributing 3%, AND
  • The business has explicitly selected 3% in configuration

If either condition is not met, the system will default back to 3.5%

3. No Contribution: 0%

• If no employer contribution applies, the rate is 0%
• This overrides all other logic

Integrations Affected

Name	Type
iPayroll	API
Xero PayrollNZ	API
Agrismart	CSV
Crystal	CSV
Keylink	CSV
PaySauce	CSV
Smartly	CSV

Question

Please indicate your KiwiSaver contribution rate, or alternative option

Original	Upgrade at 1 April 2026
Not an NZ resident or citizen	Not an NZ resident or citizen
3%	3% (temporary reduction, IRD exemption certificate required)
	3.5%
4%	4%
6%	6%
8%	8%
10%	10%
Not enrolled—under 18 or over 65	Not enrolled—under 18 or over 65
Not enrolled—wish to opt-out	Not enrolled—wish to opt-out
Not enrolled—employed less than 28 continuous days	Not enrolled—employed less than 28 continuous days
On KiwiSaver saving suspension	On KiwiSaver saving suspension

note

People who have previously answered with 3% are required to make a new selection. Other options are not affected.

How the System Resolves the Final Rate

The system determines the effective employer subsidy using:

• The employee’s KiwiSaver rate (from integration mappings)
• The employer’s configured subsidy rate (from the integration configuration)

Resolution Rules

Employee Rate	Employer Config	Result
0%	Any	0%
3.0%	3% selected	3%
3.0%	3.5% selected (or anything else)	3.5%
> 3.0% (e.g. 3.5%, 4%, 6%, etc.)	Any	3.5%

Why This Matters

These rules ensure compliance with:

• Post-2026 KiwiSaver legislation
• The requirement that 3% is only used when explicitly agreed
• The expectation that 3.5% is the standard contribution

Common Scenarios

Scenario 1: Employee at 3%, business allows 3%

→ Employer contributes 3%

Scenario 2: Employee at 3%, business does NOT allow 3%

→ Employer contributes 3.5% (automatic uplift)

Scenario 3: Employee at 4%

→ Employer contributes 3.5% (always capped to standard)

Scenario 4: No KiwiSaver

→ Employer contributes 0%