Payroll changes per 1 April

This year, in addition to the usual payroll updates, there is a change to the minimum KiwiSaver contributions.

Below is a summary of the changes from 1st April 2026 and what this means for you as an Employer:

Minimum Wage Increase

• The Adult Minimum wage increases from $23.50/hour to $23.95/hour
• The Training Minimum wage increases from $18.80/hour to $19.16/hour

What this means for you: If you have any employees on minimum wage, you will need to update their pay rate from 1 April. Also, check that any salaried employees meet minimum wage requirements by dividing their salary by the hours actually worked. We send out payroll check spreadsheets to all of our clients before 1 April, so they can decide on any needed increases.  For someone on a salary close to minimum wage, we do check this each pay if irregular hours are worked. Our payroll automatically tops up to the minimum wage or the median wage for visa holders if we have been given the right parameters for the employee. So if any visa conditions have changed (like the required hourly rate), please advise us.

Living Wage Rate

The Living wage is set in September each year. The current living wage rate is $28.95/hour and is valid until 31 August. 

ACC Earner Levy Increase

The ACC Earner Levy rate is increasing from $1.67 to $1.75 per $100 of liable earnings. These amounts are inclusive of GST. The maximum liable earnings threshold increases to $156,641.

What this means for you: Your payroll software should automatically update (we will check that it is updated if we do your payroll). Your employees may notice a small change (reduction) in their take-home pay due to this change.

If you have automatic payments set up, change them for the first pay after 1 April!

KiwiSaver Changes

The minimum/default KiwiSaver contribution rate is increasing from 3% to 3.5% for both Employer contributions and Employee contributions.

Temporary Rate Reduction: Employees can apply for a temporary rate reduction from 1st February 2026 if they want to carry on contributing at 3% from 1st April 2026. They can apply for the temporary rate reduction for a 3 to 12-month period, and they can apply as many times as they like. The Temporary Rate reduction can be applied for through their myIR account. More details can be found here.

Employers can choose to match the employee's temporary rate reduction, moving the Employer contributions down to 3% to match, but they can also choose to stay contributing at 3.5%.

What this means for you: This change will impact your wage expenses, so check your cash flow planning and how this may impact you.

Future planning: From 1st April 2028, the minimum/default KiwiSaver contribution rate will increase to 4%

KiwiSaver contributions for 16 and 17-year-olds:

Those aged 16 or 17 will qualify for Employer KiwiSaver contributions from 1st April 2026, so long as they meet other eligibility requirements.

What this means for you: If you have employees who are 16 or 17 and they contribute to KiwiSaver from their wages, and you are not already making Employer contributions, you will need to start making contributions.

 For those of you who have The Farm Office process your payroll, we have you covered for these changes and will ensure the updates are all made. You need to ensure your cash flow covers these changes and understand how these increases may affect your wage, ACC, and KiwiSaver costs for the 2027 financial year, as well as advise us of any changes you want to make starting on 1 April.