Payroll Changes 1 April 2026

If you are an employer there are a number of changes to payroll effective 1 April 2026 that you need to be aware of.  These are:

• The ACC earners levy is increasing to 1.75% from 1.67% and the maximum liable earnings increases to $156,641 (from $152,790).  Employee net pay will reduce.
• The minimum contribution rate for KiwiSaver increases to 3.5% from 3% – again net pay will reduce.
• Minimum pay rate increases to $23.95 (from $23.50).  Training rate is 80% of this.
• 16–17-year-olds can qualify for compulsory employer KiwiSaver if they are working and contributing – previously employers only had to start contributing when they turned 18.

There are two other aspects to the changes to the KiwiSaver contribution rate:

• An employee can apply for a temporary rate reduction (from 1 February 2026) if they wish to continue to stay at 3%.  This is via myIR and not by advising the employer.  IRD will send out the notification.
• If an employee reduces to 3% the employer can opt to match it – or stay at 3.5%.

Any automatic / standard payments for employees will need re-calculating and updating.