Labour will create more jobs and strengthen KiwiSaver, so New Zealanders can earn more, save more, and enjoy the retirement they've worked so hard for.
- Employer contributions become compulsory from 1 July 2028, including when an employee reduces or pauses their own contributions
- Compulsory employer contributions rise to 6% by 2032
- Employee default contribution set at 4%, with the minimum contribution rate removed for more flexibility
- Bans new total remuneration contracts that absorb employer KiwiSaver contributions into salaries
- A new KiwiSaver contribution for parents while on paid parental leave
- Employer contributions extended to people working beyond 65, from 1 July 2028
- Labour will explore more flexible KiwiSaver options for self-employed New Zealanders
If you work hard, you should be able to get ahead and build a secure future. That's why Labour created KiwiSaver.
KiwiSaver is now helping millions of New Zealanders buy their first home, build a nest egg, and plan for retirement with greater security. KiwiSaver is now worth more than $138 billion and is an important source of investment for New Zealand businesses.
Labour built KiwiSaver, and a Labour Government will strengthen it.
National can't be trusted with New Zealanders' savings. A National Government cut the KiwiSaver government contribution in 2011 and again in 2025, and scrapped the $1,000 kick-start in 2015. New Zealanders can't risk another three years of National.
A Labour Government will strengthen KiwiSaver for the next generation. We will back people to save more throughout their working lives, while making sure they have flexibility when money is tight.
A better future
Your hard work should pay off, not just in your pay packet and weekly budget, but in the savings you build over your lifetime.
With costs going up, too many New Zealanders are struggling to save for the future. More than a million working-age members aren't contributing to their KiwiSaver, and 83,400 people have had to pause their savings, allowing their employers to stop contributing too and leaving them further behind.
When people can't save, it means they have less financial security, fewer choices, and a tougher retirement. Getting through a tough patch shouldn't stop you from saving for the future. Labour will fix this.
A stronger KiwiSaver will help more New Zealanders:
- Keep saving when household budgets are under pressure
- Build a deposit for their first home
- Plan for the future
- Retire with more security
How it works
Labour is announcing practical measures to help New Zealanders save for the future. Labour will:
- Make employer contributions compulsory from 1 July 2028, and lift them to 6% by 2032, including when employees reduce or pause their own contributions
- Set the employee default at 4%, remove the minimum contribution rate, and give people more flexibility to adjust their contributions as circumstances change
- Ban new total remuneration contracts that absorb employer KiwiSaver contributions into salaries
- Provide a KiwiSaver contribution for parents while they're on paid parental leave
- Extend employer contributions to people working beyond the age of 65 years from 1 July 2028
- Explore more flexible KiwiSaver options for self-employed New Zealanders
Under a Labour Government, by 2032 most working New Zealanders will have more going into KiwiSaver, helping them plan for the future, buy a first home and retire with greater security. When money is tight, they will also be able to reduce their own contributions without missing out on their employer's contribution.
Building on KiwiSaver's legacy
KiwiSaver is one of Labour's proudest achievements. When Sir Michael Cullen created it, National voted against it.
Today, KiwiSaver is part of the fabric of New Zealand. It helps people buy their first home and prepare for retirement, while providing a source of investment for New Zealand businesses.
But it doesn't work well for everyone. It works best for people with steady employment who can afford regular contributions.
Only 44% of self-employed people actively contribute to KiwiSaver, compared with 78% of employees. People working beyond 65 can miss out on employer contributions, while most parents on paid parental leave stop contributing to their KiwiSaver. Labour will make KiwiSaver work for more New Zealanders.
Fiscal impact
Making the employer contribution compulsory and increasing the employer contribution to 6% over time will affect revenue from the Employer Superannuation Contribution Tax (ESCT). This will help fund government contributions to paid parental leave recipients and meet the government's higher costs as an employer, which will be managed through the Budget process.
Investing in our future
A stronger KiwiSaver means more wealth in Kiwi hands, and more capital invested in our economy.
It will help people plan for the future while backing businesses, creating good jobs and growing our economy.
Labour will phase in these changes carefully, giving people and businesses certainty.
When does compulsory employer contribution start, and how high does it go?
Employer contributions become compulsory from 1 July 2028, including when an employee reduces or pauses their own contributions, and will lift to 6% by 2032.
What is the new employee default contribution rate?
Labour will set the employee default contribution at 4% and remove the minimum contribution rate, giving people more flexibility to adjust their own contributions as their circumstances change.
What are total remuneration contracts, and why is Labour banning new ones?
Total remuneration contracts absorb an employer's KiwiSaver contribution into an employee's overall salary package, rather than paying it on top. Labour will ban new total remuneration contracts of this kind, so employer KiwiSaver contributions are paid in addition to salary.
Will parents get a KiwiSaver contribution while on paid parental leave?
Yes. Labour will provide a KiwiSaver contribution for parents while they are on paid parental leave. Most parents on paid parental leave currently stop contributing to their KiwiSaver.
What changes for people working past the age of 65?
From 1 July 2028, Labour will extend employer contributions to people working beyond the age of 65, who currently can miss out on employer KiwiSaver contributions.
What about self-employed people?
Only 44% of self-employed people actively contribute to KiwiSaver, compared with 78% of employees. Labour will explore more flexible KiwiSaver options for self-employed New Zealanders.
Why is Labour doing this?
Labour created KiwiSaver, which is now worth more than $138 billion and helps New Zealanders buy their first home and save for retirement. National cut the KiwiSaver government contribution in 2011 and again in 2025, and scrapped the $1,000 kick-start in 2015. More than a million working-age members are not currently contributing to KiwiSaver, and 83,400 people have had to pause their savings, which also pauses their employer's contribution. A stronger KiwiSaver will help more New Zealanders keep saving under pressure, build a deposit, and retire with more security.
What is the fiscal impact of these changes?
Making the employer contribution compulsory and increasing it to 6% over time affects revenue from the Employer Superannuation Contribution Tax (ESCT), and will help fund the new government contribution for people on paid parental leave and the government's higher costs as an employer. This will be managed through the Budget process, with changes phased in from 2027/28 to 2030/31.
Backing Kiwis to save and backing the businesses that will grow our economy.
Labour built KiwiSaver and a Labour Government will strengthen it.
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