default contribution rate has lifted<\/a> from 3 percent to 3.5 percent, as part of a staged process to lift both to 4 percent in 2028.<\/p>\nContribution rates increased unless people were already paying a higher level, or they had applied to Inland Revenue for a temporary reduction in their contribution rate, which their employer could then match.<\/p>\n
Inland Revenue said, as of Tuesday, 5696 people had their contribution rate reduced, and this number could still grow.<\/p>\n
Dean Anderson, founder of K\u014dura, said it was less than a quarter of 1 percent of the active KiwiSaver members.<\/p>\n
“I’m not sure how many Kiwis were actually fully aware of the changes that were coming. I think the real awareness will kick in when the next payslip arrives and people notice a slightly smaller deposit in their bank accounts.<\/p>\n
“This may catch out those on total remuneration contracts or anyone managing a strict budget based on their usual cash in hand. I encourage everyone to pay close attention to their payslips over the next month to ensure their employer has applied these changes correctly.”<\/p>\n
Rupert Carlyon, founder of K\u014dura, said he was not surprised at the number.<\/p>\n
![\"Rupert](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/03\/4JSKZES_Rupert_Carlyon_jpg.jpeg\")
<\/p>\n
\nRupert Carlyon is the founder of K\u014dura. (File photo)
\nPhoto: Supplied\n<\/p>\n
“I don’t think people realise what is happening or how they can get out of the change.<\/p>\n
“We have sent out four different emails saying that this is coming – but haven’t had any feedback at all or questions on it which is really surprising.<\/p>\n
“I wonder whether employers have been communicating with their employees, it is at this level that more probably needs to be done rather than through the KiwiSaver providers.”<\/p>\n
The government earlier estimated a working parent, with a starting income of $60,000 at 25, two children, who took one year of parental leave and who withdrew all their savings at 30 to buy a home, would end up with just over $500,000 in their account at 65 with the new contribution rates, compared to just under $400,000 previously.<\/p>\n
A high-income earner would get 28 percent more and a low-income earner 21 percent.<\/p>\n
Jessica McLean, chief operating officer at PaySauce, said employers had been confused about how the change was happening.<\/p>\n
“What we have seen is a huge influx of support volume over the last couple of days about things like ‘the new rate is applying already but it shouldn’t, it’s from the first of April’ but you’re paying it on the first of April so it applies, it doesn’t matter that you’re paying them for time in March it’s based on a payday\u2026. Then they want to change the payday to March and we have to say no then your employees will end up with a tax bill because you’re going to ram another period into the financial year. They’re in a big flap about it.”<\/p>\n
She said it was hard for employers who were paying total remuneration packages.<\/p>\n
This means they set aside an amount to pay staff and both the employer and employee contribution comes from that.<\/p>\n
“If the KiwiSaver rate goes up the money has got to come from somewhere. Either the employer’s got to cover it or it’s coming out of the employee’s net pay.”<\/p>\n
She said some employers were willing to absorb the cost to ensure their employer did not have to cover the whole increase.<\/p>\n
Some employers had also asked whether they could negotiate a temporary rate reduction on employee’s behalf, she said. “It’s got to be employee-led\u2026 but I think there’s this narrative that small employers are always trying to pay people the least they possible can and I don’t think that’s true. I think most of them are fine with the change.”<\/p>\n
Sign up for Money with Susan Edmunds<\/a>, a weekly newsletter covering all the things that affect how we make, spend and invest money<\/p>\n","protected":false},"excerpt":{"rendered":"The KiwiSaver contribution rate lifted to 3.5 percent this week. Photo: RNZ \/ Quin Tauetau Just under 5700…\n","protected":false},"author":2,"featured_media":569350,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[328,45,49,48,327,133,44,131,132,329,326,324,325],"class_list":{"0":"post-576019","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-audio","9":"tag-business","10":"tag-ca","11":"tag-canada","12":"tag-current-affairs","13":"tag-finance","14":"tag-news","15":"tag-personal-finance","16":"tag-personalfinance","17":"tag-podcasts","18":"tag-public-radio","19":"tag-radio-new-zealand","20":"tag-rnz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/576019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=576019"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/576019\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/569350"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=576019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=576019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=576019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"Colourful](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/03\/4JRM62R_Untitled_design_14_png.jpeg\")
<\/p>\n