KiwiSaver minimum contribution changes

We know many PayGlobal administrators are asking how the KiwiSaver minimum contribution increase from 3% to 3.5% (from 1 April 2026) should be applied in practice, especially where pay periods span March and April.

This post summarises:

• The confirmed IRD position on when to use the new rate
• How this maps to PayGlobal behaviour
• Worked examples for common timing scenarios
• What you can do next to ensure your employees are managed correctly

IRD guidance – payment date drives the rate

IRD has confirmed that for KiwiSaver minimum contributions you should:

• Always use the KiwiSaver contribution rate that applies on the date the employee is paid.
• This applies even if the pay period:
• spans dates before and after 1 April 2026, or
• ends on or before 31 March 2026, but payment is made after that date.

In other words:

The start or end date of the pay period does not matter – the payment date determines whether you use 3% or 3.5% (unless there is an approved temporary rate reduction in place). 

What this means in PayGlobal

From the 2026 NZ Tax release (v4.76.0.0), PayGlobal supports the 3.5% minimum KiwiSaver rate and related rule changes.

To stay aligned with IRD’s guidance, you should configure and maintain your KiwiSaver and Employee Super Fund records so that:

• Any pay with a payment date on or after 1 April 2026 uses the 3.5% minimum for employees on the standard minimum rate.
• Any pay with a payment date before 1 April 2026 continues to use the 3% minimum, even if the PTD (pay period) includes 1 April 2026.
• For employees with an IRD‑approved temporary rate reduction (for example staying at 3% for a defined period), the reduced 3% rate continues to apply for pays within that approved reduction period, regardless of whether the payment date is on or after 1 April 2026.

Your configuration (for example, effective dates on KiwiSaver, Employee Super Fund and KiwiSaver State records) should be set so that the calculated result in PayGlobal matches the IRD payment date outcome described above.

Three key timing scenarios (with examples)

Below are the three core scenarios we see most often questioned, and how the KiwiSaver rate should be applied.

Scenario 1 – Pay is paid early relative to its PTD date range

• Description: Payment date is before 1 April 2026, but the PTD includes dates on or after 1 April 2026.
• Outcome: New rates do not apply. Continue to use 3%.

Example

• Pay period (PTD): 23 March – 5 April 2026
• Payment date: 30 March 2026

Result: Because the payment date is before 1 April 2026, the employer must use the 3% minimum KiwiSaver contribution rate (unless the member has elected a higher rate). The fact that the PTD includes 1 April does not change this.

Scenario 2 – Pay is paid in-line with its PTD date range

• Description: Payment date is on or after 1 April 2026, and the PTD is the first pay for the 2026/27 tax year, with 1 April 2026 falling within the PTD.
• Outcome: New rates apply. Use 3.5%.

Example

• Pay period (PTD): 23 March – 5 April 2026
• Payment date: 2 April 2026

Result: Because the payment date is after 1 April 2026, the employer must use the 3.5% minimum KiwiSaver contribution rate for the whole pay, unless:

• • the member has elected a higher rate, or
  • the member has an approved temporary rate reduction in place (in which case the reduced rate applies).

Scenario 3 – Pay is paid late relative to its PTD date range

• Description: Payment date is on or after 1 April 2026, but the PTD falls entirely before the payment date (for example, a March pay processed and paid in early April).
• Outcome: New rates apply. Use 3.5%.

Example

• Pay period (PTD): 25 March – 31 March 2026
• Payment date: 2 April 2026

Result: Even though the PTD is fully in March, the payment date is after 1 April 2026, so the employer must use the 3.5% minimum KiwiSaver contribution rate (again, subject to any higher elected rate or approved temporary reduction).

 

What you should do next

For payroll admins, we recommend:

1. Confirm your version
• Make sure you are on the NZ Tax 2026 (v4.76.0.0) PayGlobal release.
2. Plan your KiwiSaver Update Tool run(s)
• When you run the KiwiSaver Update Tool, you may need to use an employee query that filters employees by pay period code (for example, weekly vs fortnightly), so you can control which group of employees you are updating at a time.
• Before you run the tool, review your pay dates across all pay runs and pay groups so you know, for each frequency, which is the first pay with a payment date on or after 1 April. Use this to determine the Application Date(s) and the start dates you will assign.
• This helps you align the Application Date and effective start dates with the correct pay periods for each frequency.
3. Set the start date for new Employee Super Fund records
• When new Employee Super Fund records are created for the 3.5% rate (either manually or via the KiwiSaver Update Tool), set the start date on those records so that it matches the start of the first pay period where the payment date is on or after 1 April 2026 for that pay group.
• This ensures PayGlobal’s calculation lines up with the IRD requirement to use the rate that applies on the payment date.
4. Test in a non‑live environment where possible
• Run the KiwiSaver Update Tool in report‑only mode first and review the output.
• Then test pays and confirm the KiwiSaver results match the payment‑date‑driven outcomes described in the scenarios above.

If you have a scenario that does not seem to match the behaviour described here, or you are unsure how to set up dates in your specific database, please log a case with MYOB Support or post your scenario (with example dates and payment timing) in this community so we can help you validate it.

Reference materials

For further guidance and the wider NZ Tax 2026 update, refer to the PayGlobal End of Year Resources (Help Centre).