Employment & Payroll Changes - Are You Ready?
- 5 hours ago
- 1 min read
We've noted the key changes below. If you need help implementing the changes , the BM Accounting team is here to support you.
Havelock North - 06 876 7159
Waipukurau - 06 857 8901
Please ensure your payroll system is updated for the upcoming 1 April 2026 changes. If you process payroll manually, make sure you are using the new tax tables from this date.
For employees paid by automatic payment, review and adjust their payments to ensure they align with the new rates.
KiwiSaver Changes
From 1 April 2026:
The default employee and employer contribution rates increase from 3% to 3.5%.
Members may apply for a temporary contribution reduction back to 3% for a period of 3–12 months.
Employers must now make compulsory contributions for eligible 16–17‑year‑old employees.
Minimum Wage
From 1 April 2026:
The adult minimum wage increases to $23.95 per hour, an increase of 45 cents.
The starting‑out and training wage increases to $19.16 per hour, remaining at 80% of the adult rate.
Pay periods spanning 1 April: Apply the current rate up to 31 March, and the new rate from 1 April, even if the payment date is in April.
A corresponding increase to ACC Earners’ Levies will also take effect. For employees with variable hours or manually processed wages, this is included in standard PAYE calculations and will update automatically in compliant payroll systems.
Action Required
Update any employees on minimum wage to the new rates.
Ensure your payroll system applies the new 3.5% KiwiSaver contribution rates.
Adjust any standing net‑pay automatic payments to reflect updated deductions and rates.
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