What changed for KiwiSaver in Budget 2025?
Budget 2025 made three big changes to KiwiSaver: the government contribution was halved, the default contribution rate is rising, and younger workers were brought in. Here is what each means for your balance, with the figures current as at 2026.
The government contribution was halved
From 1 July 2025 the government contribution dropped to 25 cents per dollar, with a maximum of $260.72 a year, down from its previous level. It is also no longer paid to anyone with income over $180,000 (Inland Revenue). To still get the full amount, contribute at least $1,042.86 between 1 July and 30 June. The full detail is in the government contribution guide.
Contribution rates are rising
The default employee and employer rate rose to 3.5% on 1 April 2026 and rises again to 4% from 1 April 2028. You can still choose 4%, 6%, 8% or 10%, or apply to stay at 3% temporarily. See KiwiSaver contribution rates explained.
Younger workers are now included
16 and 17 year olds became eligible for the government and employer contributions, bringing them into line with older members.
What to do about it
With the government adding less, low fees and the right fund matter more than ever. Check whether it is worth switching KiwiSaver, and verify your own numbers against Inland Revenue.
Compare KiwiSaver funds and fees on Kāhu.
Frequently asked questions
How much is the KiwiSaver government contribution after Budget 2025?
Up to $260.72 a year as at 2026, at 25 cents per dollar contributed, and not paid on income over $180,000.
When do KiwiSaver contribution rates rise?
The default rose to 3.5% on 1 April 2026 and rises to 4% on 1 April 2028.
Did Budget 2025 change who can get contributions?
Yes. 16 and 17 year olds are now eligible for the government and employer contributions.
Kāhu provides general information, not personalised financial advice. Kāhu is a KiwiSaver comparison and switching platform operated by Financial Advice NZ Limited, a licensed Financial Advice Provider (FSP1009051). The figures here are general and current as at June 2026. For advice on your situation, speak to a licensed financial adviser.