Let’s walk through the key payroll updates for 2026, so you’re prepared and confident about what’s coming. Here’s what you should keep an eye on to stay compliant and support your team. Reach out if you need help.
Minimum wage increase
- Starting April 1, 2026, you’ll need to pay your adult employees at least $23.95 per hour. Make sure your payroll systems reflect this update.
- If you have team members on starting-out or training wages, their minimum rate goes up to $19.16 per hour, which is 80% of the adult wage.
- Take a moment to review everyone’s pay, especially if anyone is earning close to the minimum. Update these rates before April 1 to avoid any issues.
ACC earners’ levy changes
- You’ll see the ACC earners’ levy rate increase from $1.67 to $1.75 per $100 of liable earnings. Make sure you adjust your calculations to account for this change.
- The maximum liable earnings threshold for ACC is now $156,641. This affects higher earners, so keep it in mind for your senior staff.
- With the new cap, the most any employee will pay for the ACC levy in the 2026/27 tax year is $2,741.22.
- Some employees may notice a slight drop in their net pay if their gross pay doesn’t change, so be ready to answer questions if they ask.
KiwiSaver contribution changes
- The default KiwiSaver contribution rate increases from 3% to 3.5% for both employees and employers.
- Employers must contribute at least 3.5% of gross earnings unless the employee has an approved temporary rate reduction.
- Employees aged 16–17 enrolled in KiwiSaver become eligible for compulsory employer contributions.
- From February 2026, employees may apply to Inland Revenue for a temporary reduction back to 3% (effective from 1 April 2026).