KiwiSaver changes coming 1 April 2026

Default employer and employee KiwiSaver contribution rates will increase from 3% to 3.5%.

Employees may apply to Inland Revenue to temporarily remain at the 3% rate, with their employer matching this amount. Applications opened on 1 February and can be approved for up to 12 months. After this period, the default 3.5% rate will apply unless a further temporary reduction is approved.

Learn more here.

Minimum Wage increase

From 1 April 2026, the adult minimum wage will increase from $23.50 to $23.95 per hour.

• Full time minimum wage workers will earn an additional $18 per week.
• Weekly earnings will increase to $958 based on a 40-hour week before tax or deductions.
• The starting out and training wage will increase from $18.80 to $19.16 per hour.

Businesses employing staff on minimum or starting out wages should ensure payroll systems are updated to reflect the new rates.

Learn more here.

ACC levy increase

From 1 April 2026, changes to ACC levies will come into effect.

The ACC earners’ levy will increase from 1.67% to 1.75% (for employees this is deducted as part of your PAYE and for sole traders this forms part of your ACC invoice) moving to a maximum of $156,641 of earnings.

Learn more here.

Employment Relations Act Changes
As of 21 February 2026 the following changes came into effect:

Removal of the 30-day rule for collective agreements
Previously, if a collective agreement applied in a workplace, new employees were required to start on that agreement for their first 30 days.

This rule has now been removed. Non-union employees can begin employment on an Individual Employment Agreement from day one.

Learn more here.

Clarification of contractor vs employee status
Clearer rules have been introduced to help determine whether a worker is a contractor or an employee.

• A contractor is self-employed and engaged under a contract for services. Contractors invoice for their work.
• An employee works under an employment agreement and is paid wages or salary.

Two legal tests are used to help determine the correct classification:

1. Gateway test making it easier to ascertain if an individual is a contractor.
2. Common law test for further clarification on status if required.

Learn more here.

Changes to personal grievance rules
If workplace issues cannot be resolved, an employee may raise a personal grievance against their current or former employer.

Key changes include:

• Employees earning $200,000 or more per year under new employment agreements can no longer raise a personal grievance for unjustified dismissal or disadvantage relating to dismissal.
• Employees on existing agreements have a 12-month transition period before the income threshold applies.

Learn more here.

Actions for employers

Remain compliant, check your payroll systems and employment agreements to ensure these are updated according to the new changes.