Payroll Changes

From 1 April 2026, New Zealand employers must update payroll systems to reflect a higher minimum wage, increased KiwiSaver contributions and revised ACC levies.

Minimum Wage Updates

Starting 1 April 2026, you’ll need to pay your adult employees at least $23.95 per hour. Make sure your payroll systems reflect this update.

If you have team members on starting-out or training wages, their minimum rate goes up to $19.16 per hour, which is 80% of the adult wage.

Take a moment to review everyone’s pay, especially if anyone is earning close to the minimum. Update these rates before April 1st to avoid any issues.

KiwiSaver Contribution Changes

The default KiwiSaver contribution rate increases from 3% to 3.5% for both employees and employers.

Employers must contribute at least 3.5% of gross earnings unless the employee has an approved temporary rate reduction.

Employees aged 16–17 enrolled in KiwiSaver become eligible for compulsory employer contributions.

From February 2026, employees may apply to Inland Revenue for a temporary reduction back to 3% (effective from 1 April 2026).

This is a compulsory change. It’s not optional, and it applies to every employer with KiwiSaver-enrolled staff on the default rate.

ACC Earners’ Levy Adjustments

ACC earners’ levy rate increases from $1.67 to $1.75 per $100 of liable earnings. Make sure you adjust your calculations to account for this change.

The maximum liable earnings threshold for ACC is now $156,641. This affects higher earners, so keep it in mind for your senior staff.

With the new cap, the most any employee will pay for the ACC levy in the 2026/27 tax year is $2,741.22. 

Some employees may notice a slight drop in their net pay if their gross pay doesn’t change, so be ready to answer questions if they ask.

CG Comment: Please contact us if you have any questions about these changes