KiwiSaver Changes Budget 2025
Di Crawford Errington 
Legislated KiwiSaver changes included in Budget 2025
The government announced some key changes to the KiwiSaver scheme in its Budget 2025 announcement. Some started on 1 July 2025, with most affecting payroll kicking in 1 April 2026. The key changes are:
- For the year starting 1 July 2025, the government contribution will be cut from 50 cents to 25 cents per $1, with the maximum contribution reduced to $260.72 (NZers must be contributing minimum $1042.86 per year to receive this full entitlement)
- Eligibility for KiwiSaver contributions will be expanded to include 16+17 year old Kiwis. To enter KiwiSaver, they cannot auto enrol, as they must apply directly due to parental consent being required.
- This means they will be eligible:
- for the Government contributions 1 July 2025
- Employer Contributions from 1 April 2026
- The default contribution rate will also be increasing
- from the current 3% up to 3.5% starting in April 2026
- then to 4% from April 2028
- There is a temporary opt down option to stay at 3% if you feel unable to afford increase which is available for 12 months
- There is a new income cap of $180,000, above which Kiwis will no longer be eligible for the Government contributions
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Categories: : KiwiSaver, Legislation Updates, Payroll