KiwiSaver when you start a new job

How KiwiSaver works when you start a job in New Zealand, what your employer adds, and the decisions worth making in your first few weeks.

ManyJobs guide · Checked against official sources on 3 November 2026 · General information, not tax, legal or immigration advice.

KiwiSaver is New Zealand's voluntary, work-based retirement savings scheme. For most people it is the first long-term investment they own, and the choices you make when you start a job, such as your contribution rate and your fund, can make a real difference over many years. This guide explains the basics in plain language. Rates and rules change, so always confirm the current details on Inland Revenue's KiwiSaver pages.

Automatic enrolment when you start a job

If you are aged 18 to 64, are a New Zealand citizen or entitled to live in New Zealand indefinitely, and are not already a member, your new employer will usually enrol you automatically when you start. You will then have a short opt-out window, which begins on day 14 and ends on day 56 after you start, if you decide KiwiSaver is not for you. If you are already a member, give your new employer your KiwiSaver deduction form (KS2) or tell them your rate, and your contributions continue in the same scheme.

People under 18 cannot be automatically enrolled, but they can join themselves. People on temporary visas are generally not eligible to join.

How much comes out of your pay

Your contribution is a percentage of your gross pay (before tax), deducted every payday. From 1 April 2026 the default rate is 3.5 percent, up from 3 percent, and it is legislated to rise to 4 percent from 1 April 2028. You can also choose a higher rate of 4, 6, 8 or 10 percent.

If 3.5 percent is not affordable, Inland Revenue lets you apply for a temporary reduction to 3 percent for between three and twelve months, and you can apply again when it ends. If money is very tight, a savings suspension (formerly called a contributions holiday) is also possible. Bear in mind that stopping or reducing your contributions can also affect what your employer contributes.

What your employer adds

If you contribute from your wages, your employer must generally contribute too. The compulsory employer rate rises in step with the default: 3.5 percent of your gross pay from 1 April 2026 and 4 percent from 1 April 2028. Employer contributions are taxed under employer superannuation contribution tax (ESCT), so the amount that reaches your account is less than the headline percentage.

From 1 April 2026, employees aged 16 and 17 who contribute from their wages are also entitled to compulsory employer contributions. If you are a teenager with a part-time job, it is worth checking your payslip to see whether this applies to you.

Some job offers describe pay as "total remuneration", meaning employer KiwiSaver comes out of the advertised package rather than on top of it. If an offer is unclear, ask how KiwiSaver is treated before you accept.

The government contribution

The government also pays into eligible members' accounts each year. From 1 July 2025 it pays 25 cents for every dollar you contribute, up to a maximum of $260.72 a year, which you reach by contributing $1,042.86 or more between 1 July and 30 June. People earning more than $180,000 a year are no longer eligible. Members aged 16 and 17 became eligible from 1 July 2025. The payment is made automatically after the end of each KiwiSaver year if you are eligible.

Choosing a provider and fund

If you are enrolled automatically and do not choose a scheme, you will be placed in a default scheme. You can switch provider or fund at any time, and many people never review this choice. Funds range from conservative, which holds more cash and bonds and moves less in value, to growth or aggressive funds, which hold more shares and can rise and fall more but have historically grown more over long periods.

Before choosing, compare fees, the type of fund and how long it will be until you need the money. The government-funded Sorted KiwiSaver fund finder is an independent way to compare funds. ManyJobs does not recommend any provider.

When you can use the money

KiwiSaver savings are generally locked in until you reach the age of eligibility for NZ Super, currently 65. The main exceptions are a first-home withdrawal (usually after three years of membership), significant financial hardship, serious illness and permanently emigrating (other than to Australia). Because the money is locked in, KiwiSaver works best alongside a separate, easy-to-reach emergency fund.

A first-week checklist

• Check your first payslip shows a KiwiSaver deduction at the rate you expect, and an employer contribution.
• Log in to your KiwiSaver provider or myIR to confirm contributions are arriving.
• Decide whether your fund suits your timeframe, not just the default you were given.
• Keep your contact details up to date so you receive statements.
• If you change jobs, give your new employer your KiwiSaver details so deductions continue.

Related guides: IRD numbers and tax codes and understanding your payslip.