From 1 April 2026, several changes will impact payroll cost, take home pay deductions, and compliance processes across New Zealand. These changes apply from the first pay paid in April, even if some of the pay relates to March.
Beyond implementation, this is also a valuable opportunity for organisations to step back and review payroll decisions, documentation, and governance, ensuring clarity before payroll is expected to execute change.
Premium Payroll Solutions supports organisations to prepare for these changes with practical readiness steps, configuration validation, and governance support.
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The minimum KiwiSaver employee and employer contributions increase from 3 percent to 3.5 percent from 1 April 2026.
Employers must pay compulsory contributions for 16 and 17 year old employees who are KiwiSaver members
Employees may apply to Inland Revenue from 1 February 2026 to temporarily reduce their KiwiSaver contribution rate to remain at 3 percent for a period of 3 to 12 months, subject to IRD approval. Employers may choose whether to match an employee’s temporary reduction.
The ACC earners levy rate increases to $1.75 per $100 of liable earnings, and the maximum liable earnings threshold increases to $156,641
From 1 April 2026:
- Adult minimum wage increases to $23.95 per hour.
- Starting out and training wage increases to $19.16 per hour
This white paper explores the payroll changes effective from April 2026 and outlines how organisations can think about impact, timing, and readiness beyond payroll processing.
Get Prepared Today
Premium Payroll Solutions works with organisations to support payroll readiness ahead of legislative change, helping clients understand potential impacts before they materialise in payroll processing.
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