Payroll Changes 1 April 2026

This 1st April brings all the usual payroll changes as well as changes to KiwiSaver rules.

This 1st April brings all the usual payroll updates, as well as a change in minimum KiwiSaver contributions. Below is a summary of the changes effective 1st April 2026 and what this means for you as an Employer:

Minimum Wage Increase:

The Adult Minimum wage is increasing from $23.50 per hour to $23.95 per hour
The Training and Starting-Out Minimum wages are increasing from $18.80 per hour to $19.16 per hour

What this means for you: If you have any employees on Minimum Wage you will need to ensure their pay rate is updated from 1st April. Also check any salaried employees meet minimum wage requirements by taking salary divided by actual hours worked. For someone on salary that is close to minimum wage, this is a check that is required each pay if irregular hours are worked.

ACC Earner Levy Increase:

The ACC Earner Levy rate is increasing from $1.67 to $1.75 per $100 of liable earnings. These amounts are inclusive of GST.

The maximum liable earnings threshold increases to $156,641.

What this means for you: Your payroll software should automatically update (but always pays to check with the software team). Your employees may notice a small change (reduction) in their take home pay due to this change.

KiwiSaver Changes

The minimum / default Kiwisaver contribution rate is increasing from 3% to 3.5%. This relates to both Employer contributions and Employee contributions.

Temporary Rate Reduction: Employees can apply for a temporary rate reduction from 1st February 2026 if they want to carry on contributing at 3% from 1st April 2026. They can apply for the temporary rate reduction for a 3 month to 12 month period, and they can apply as many times as they like. The Temporary Rate reduction can be applied for through their myIR account. More details can be found here

Employers can choose to match the Employees temporary rate reduction, moving the Employer contributions down to 3% to match, but they can also choose to stay contributing at 3.5%.

What this means for you: Again this change will impact on your wage expenses, so check in on your cashflow planning and how this may impact.

Future planning: From 1st April 2028 the minimum/default KiwiSaver contribution rate will increase again to 4%

KiwiSaver contributions for 16 and 17 year olds:

Those aged 16 or 17 will qualify for Employer KiwiSaver contributions from 1st April 2026, so long as you meet other eligibility requirements.

What this means for you: If you have employees who are 16 or 17 and they contribute to KiwiSaver from their wages, as the Employer you will need to start making contributions.

To finish

As you can see there are lots of updates happening 1st April and it can be overwhelming! We are here to help if you need any assistance, don't hesitate to reach out.

For those of you who have Ontrack process your payroll, we have you covered for the above changes and will ensure the updates are all made. You need to ensure your cashflow planning allows for these upcoming changes and understand how these increases may affect your wage, ACC and KiwiSaver costs for the 2027 financial year.

Categories: : Payroll