Nanny Employer Payroll Changes New Zealand 2026

What Nanny Employers in New Zealand Need to Know Before April 2026

If you employ a nanny, 2026 brings a handful of payroll changes worth getting across before they catch you off guard. None of these are dramatic, but getting them wrong could result in underpaying your nanny, misreporting to IRD, or falling short on KiwiSaver obligations.

In the article below we have summarised those key changes.

Minimum Wage Is Going Up to $23.95

From 1 April 2026, the adult minimum wage increases to $23.95 per hour. This applies across all employment types, including casual and part-time arrangements, so nannies working irregular hours are just as affected as those on set weekly schedules.

For au pairs, we’ve updated our pay guide based on the new minimum wage from 1 April and you can check that out here

The practical impact goes beyond the base hourly rate. Under the Holidays Act 2003, a nanny's annual leave, public holiday pay, and relevant daily pay calculations are all tied to what they actually earn. When the rate goes up, so do those entitlements.

Even if your nanny already earns well above $23.95, April is a sensible time to review their rate. The nanny labour market in New Zealand has tightened over recent years and keeping pay competitive helps with retention. Our latest pay guidance is attached in this article here.

KiwiSaver Contributions Are Increasing

This one has the biggest financial impact for most families.

The default KiwiSaver contribution rate is increasing to 3.5% for both employees and employers, with a further increase to 4% expected in the years ahead. Employees who want to stay at a lower rate will need to actively apply for a temporary rate reduction via their MyIR. This can be from 3 months to a year and should be used to mitigate the cash impact of the increase in Kiwiasver rate.

For nanny employers, this also means your compulsory employer contribution goes up. That increases the total cost of employment, which catches some families off guard if they've only been budgeting around the gross wage. If you need help understanding what the impact of that will be, just get in touch with the team at [email protected].

It's worth having a straightforward conversation with your nanny about this too. Their take-home pay may shift slightly depending on their current contribution settings, and it helps to give them a heads-up rather than have it show up unexpectedly on a payslip. If you are an existing Pay The Nanny customer, we’ve already emailed all nannies who are on the payroll, so they should be well informed.

ACC Earners' Levy Moving to 1.75%

The ACC Earners' Levy, which is deducted from employee wages, is set to increase to 1.75%. It's a small movement, but it does affect net pay, and payroll systems need to reflect the updated rate to stay compliant.

This levy funds ACC's earners' account, which covers injuries that happen outside of work. Every employed person in New Zealand pays it, and the rate is reviewed periodically by ACC and the government.

From 1 April 2027 onwards, it will also increase to 1.83%.

Mileage Reimbursements: Keep an Eye on This One

No confirmed update yet, but IRD mileage reimbursement rates are usually reviewed around May each year. For a petrol car, the current rate sits at $1.17 per kilometre, and with fuel and vehicle costs remaining elevated, an increase is likely to occur.

This matters if your nanny uses their own car for any part of their work, whether that's school runs, picking up children from activities, or running household errands. Reimbursements paid at the IRD approved rate are generally tax-free.

Why Small Changes Add Up

A lot of the changes coming through in April are similar to ones that have occurred in previous years, however the small changes can often creep up.