New Zealand – Changes in ACC levy rates – 1st April 2026

Future Levy Hike

• ACC Earners’ Levy: Confirmed to increase on April 1, 2026.
  • New Rate: $1.75 per $100 of liable earnings (up from previous years).57
  • Max Liable Earnings: Increases to $156,641.
  • Payroll Action: Update the ACC levy rate effective for pay runs with a payment date on or after April 1, 2026.

Changes to KiwiSaver Contributions (Effective April 1, 2026)

Increased Contribution Rates

• Employer and default employee KiwiSaver contribution rates will increase from 3% to 3.5%.

Temporary Employee Rate Reduction

• Employees can apply for a temporary rate reduction starting February 1, 2026, if they wish to continue contributing at the 3% rate after April 1, 2026. This might be due to affordability concerns or preference for alternative savings methods.
• The temporary reduction period can range from 3 months (92 days) up to 12 months. Employees may apply for this reduction multiple times.
• Employers have the option to match an employee’s temporary rate reduction.
• The Authority will notify the employer when an employee moves from the temporary rate back to a higher contribution rate.

Contributions for 16 and 17-Year-Olds

• Effective April 1, 2026, 16 and 17-year-olds will qualify for employer KiwiSaver contributions, provided they meet all other eligibility requirements.
• If a 16 or 17-year-old contributes to KiwiSaver from their wages, the employer will be required to start making contributions.
• Note: Prior to April 1, 2026, employer contributions were only mandatory for employees aged 18 to 65.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.

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New Zealand – Changes in ACC levy rates – 1st April 2026

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