KiwiSaver Changes Coming: What Nannies and Families Need to Know

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.