KiwiSaver Changes Coming: What Nannies and Families Need to Know | Pay The Nanny [ ![Pay the nanny logo](https://assets.paythenanny.nz/images/logo-white.png) ](/) [Parents](https://paythenanny.nz/For-Families) [Nannies](https://paythenanny.nz/For-Nannies) [Agencies](https://paythenanny.nz/for-agencies) [Pricing](https://paythenanny.nz/pricing) [Contact](https://paythenanny.nz/contact) [Sign Up](https://paythenanny.nz/signup) [Log In](https://paythenanny.nz/app/login) Article ------- KiwiSaver Changes Coming: What Nannies and Families Need to Know ================================================================ By Mark Hudson · 29 September, 2025 From July 2025 through to 2028, KiwiSaver is changing in stages. If you’re a nanny or a family employing one, here’s what’s coming, how it affects you, and how Pay The Nanny will make sure you’re always compliant. ![KiwiSaver Changes Coming: What Nannies and Families Need to Know](https://assets.caresies.io/articles/2298/conversions/C20KK7SOzoYiZ2TBdsau-webp-featured.webp) Changes from 1 July 2025 ------------------------ The first round of changes takes effect in mid-2025, and these impact government contributions. - 16- and 17-year-olds will qualify for government contributions, provided they meet the usual eligibility requirements. Before July 2025, only members aged 18 and over could receive these. - The government contribution will halve — from a maximum of $521.43 each year to $260.72. - Anyone earning more than $180,000 in a year will no longer qualify for government contributions. - For the year ending 30 June 2025, government contributions remain unchanged. These will be paid in July and August 2025 at the current rate. For nannies, this means that younger members will be able to build their savings earlier. For families, it doesn’t affect your employer contributions, but it may encourage younger nannies to join KiwiSaver. What's Changing from 1 April 2026 --------------------------------- From **1 April 2026**, the Government has increased the default KiwiSaver contribution rates for both employees and employers: - The default contribution rate will rise to 3.5% (from 3%). - This applies to both nannies who contribute from their wages and families who make the matching employer contribution. Temporary Contribution Option ----------------------------- To ease the transition, from **1 February 2026**KiwiSaver members can apply for a **temporary rate reduction**. This allows employees to continue contributing at 3% for a set period after April 2026. - If a nanny applies for the temporary rate, the family employing them can also match this 3% rate. - Once the temporary period ends, contributions must move to the new 3.5% default. - Inland Revenue will notify employers directly when an employee moves up to 3.5%. What’s Changing from 1 April 2028? ---------------------------------- The next step is already confirmed: - From 1 April 2028, the default employer and employee contribution rates will rise again to 4%. This staged approach means higher savings for nannies in the long run, but also slightly higher costs for families. What This Means for Nannies --------------------------- - If you’re contributing to KiwiSaver, your contributions will gradually rise from 3% to 4% by 2028. - Your take-home pay may reduce slightly, but your retirement savings will grow faster. - You can apply for a temporary 3% rate from February 2026 if you need more time to adjust. What This Means for Families Employing Nannies ---------------------------------------------- - Employer contributions will also increase to 3.5% in 2026 and 4% in 2028. - If your nanny applies for a temporary reduction, you can also contribute at 3% until Inland Revenue instructs otherwise. - Families employing 16- and 17-year-old nannies will need to begin contributing if those nannies opt into KiwiSaver. - Pay The Nanny will update payroll automatically, so you don’t need to worry about compliance or manual changes. How Pay The Nanny Will Help --------------------------- These changes can feel complicated, but Pay The Nanny will take care of everything in the background. We’ll: - Update contribution rates in line with the new rules. - Ensure employer contributions match employee rates. - Provide guidance to families and nannies about temporary reductions. - Communicate with you well ahead of both the 2026 and 2028 changes. You’ll always receive clear payslips/statements and updated information without needing to lift a finger. Preparing Now ------------- Even though the first change doesn’t kick in until April 2026, it’s a good time to start thinking ahead: - Nannies: Review your KiwiSaver contributions and think about whether you’d like to apply for the temporary 3% option. - Families: Budget for the slight increase in employer contributions over the next few years. Conclusion ---------- KiwiSaver is changing in 2026 and again in 2028, but there’s no need to worry too much. Pay The Nanny will be in touch closer to the time and handle all the details to keep families compliant and nannies supported. For now, this guide is here to help you prepare and feel confident about what’s coming. For more information, check [out the guide](https://www.business.govt.nz/news/get-ready-for-kiwisaver-changes#:~:text=1%20April%202026%20changes,3%25%20from%201%20April%202026.) on MBIE's website here. [ ![](https://assets.caresies.io/articles/2470/conversions/G6UmSaW1fD0BnrD2Ncl4-webp-featured.webp) ](https://paythenanny.nz/articles/nanny-employer-payroll-changes-new-zealand-2026)By Mark Hudson · 19 March, 2026 ### [Nanny Employer Payroll Changes New Zealand 2026](https://paythenanny.nz/articles/nanny-employer-payroll-changes-new-zealand-2026) From April 2026, several payroll changes will impact families employing nannies in New Zealand. From minimum wage increases to KiwiSaver and ACC updates, staying compliant is key. 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[Read more...](https://paythenanny.nz/articles/planning-christmas-leave) [ ![](https://assets.caresies.io/articles/2345/conversions/87HTdiuFoFOykn9m2foQ-webp-featured.webp) ](https://paythenanny.nz/articles/paye-for-nannies-new-zealand)By Mark Hudson · 07 November, 2025 ### [What You Need to Know About PAYE and Tax for Nannies in New Zealand](https://paythenanny.nz/articles/paye-for-nannies-new-zealand) Hiring a nanny in New Zealand means becoming an employer. Here’s everything you need to know about PAYE, KiwiSaver, and tax obligations - and how Pay The Nanny makes it simple to stay compliant. [Read more...](https://paythenanny.nz/articles/paye-for-nannies-new-zealand) [ ![](https://assets.caresies.io/articles/2291/conversions/V94c7962A5Yf60q2pdrp-webp-featured.webp) ](https://paythenanny.nz/articles/nanny-payslip-explained)By Mark Hudson · 26 September, 2025 ### [The Secret Life of a Nanny’s Payslip](https://paythenanny.nz/articles/nanny-payslip-explained) Ever wondered what your nanny’s payslip is really saying? From PAYE tax to KiwiSaver to holiday pay, here’s a lighthearted behind-the-scenes look at the secret life of a nanny’s payslip in New Zealand. [Read more...](https://paythenanny.nz/articles/nanny-payslip-explained) [ ![](https://assets.caresies.io/articles/2512/conversions/csjF1e66YT3IWm6MfxUH-webp-featured.webp) ](https://paythenanny.nz/articles/being-paid-as-a-nanny)By Mark Hudson · 14 May, 2026 ### [Why Being Paid Properly Matters as a Nanny](https://paythenanny.nz/articles/being-paid-as-a-nanny) Being paid properly as a nanny is about much more than money in your account. It protects your income, your leave, your KiwiSaver and your future plans. Here's why proper payroll matters for nannies in New Zealand [Read more...](https://paythenanny.nz/articles/being-paid-as-a-nanny) ![Pay the nanny](https://paythenanny.nz/images/logo-white.png)Join Our Community Stay in the loop! Subscribe to receive the latest updates, exclusive content, and special offers straight to your inbox. 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