Finance Minister Nicola Willis presented the Budget at Parliament on 22 May 2025. Here are some key things you need to know about the changes to KiwiSaver.
There are three key changes to the Government contribution, which will come into effect from 1 July 2025:
- The Government contribution will be halved to 25 cents per dollar you contribute, up to a to a maximum of $260.72. Previously it was $521.43, which was 50 cents per dollar. To receive this, you still need to put in $1,042.86.*
- The Government contribution won’t be paid to those earning over $180,000 p.a.
- The Government contribution will now be paid to enrolled 16- and 17-year-olds (it was previously only paid to those aged over 18).
There are also three key changes to employer and employee contributions. These changes will be staggered over the next three years:
- The default rate for both employer and employee contributions will be increased to 4% (from 3%).
- Workers in financial stress can apply to IRD to stay on a rate of 3%.
- It’s now compulsory for employers to make contributions for enrolled 16- and 17-year-olds. The age for employee auto-enrolment will stay at 18.
Across the next four years, the Government is expected to spend about $3 billion less in KiwiSaver contributions.
*This is always subject to eligibility conditions based on age and country of residence.