From the PAYROLL desk - Important Employer Tips for the 1st of April Changes

February 27, 2026

Hello from your A4 Payroll Team 👋

We wanted to give you a heads-up about some important payroll-related changes coming into effect from 1 April 2026.

Your Accounted4 Payroll Team member will take care of applying any relevant changes for you, keep you informed, and get in touch if there’s anything we need to discuss.

🌱 KiwiSaver Changes – Effective 1 April 2026

Default contribution rates increasing
The default employee KiwiSaver deduction and employer contribution rates will increase from 3% to 3.5%.

This will slightly reduce employees’ take-home pay
It will also increase employer costs

Temporary rate reduction option
Employees can apply to temporarily stay on the 3% rate from 1 April 2026.
Once approved, employer contributions can match this reduced rate.

Applications open from 1 February 2026

More info here:
KiwiSaver Info

KiwiSaver for 16 –17 year olds
From 1 April 2026, employers will be required to make KiwiSaver employer contributions for eligible employees aged 16 and 17 (previously this only applied to ages 18–65).

💰 Minimum Wage Increase

From 1 April 2026:

Adult minimum wage increases from $23.50 to $23.95 per hour (applies to employees aged 16 and over)
Starting out and training wage increases from $18.80 to $19.16 per hour (80% of the adult rate)

More details:
Minimum Wage Info

📊 Salaried Employees – Minimum Wage Check

If you have salaried employees, it’s important to ensure their gross earnings meet minimum wage requirements for every pay period.

Employees earning around or below $49,816 per annum should be reviewed
Employees must receive at least the minimum hourly rate for every hour worked

Payroll Tip:
An employee on minimum wage working 40 hours per week will earn:

$23.95 × 40 hours = $958 per week
$49,816 per annum

👥 Employees on or Near Minimum Wage

As the minimum wage is increasing by 1.92%, we recommend reviewing all current pay rates.
Where possible, this may also be a good opportunity to consider increases for other employees to maintain pay relativity.

🌿 Living Wage (Voluntary)

The 2025/26 Living Wage rate is $28.95 per hour.

The Living Wage is voluntary
It’s separate from the minimum wage and focused on supporting workers and their whānau
Employers who pay the Living Wage aim to support dignity, wellbeing, and financial security

Learn more:
Living Wage Info

🛡️ ACC Earner Levy Increase

From 1 April 2026, the ACC Earner Levy will increase to 1.75% per $100.

Employees will see slightly higher PAYE deductions
Take-home pay will reduce slightly as a result

More info:
ACC Levy Increase Info

🎓 Student Loan Repayment Threshold

The student loan repayment threshold remains unchanged for the 2026/27 year:

$464 per week
12% will continue to be deducted from earnings above this threshold

More details:
Student Loan Info

🧾 KiwiSaver ESCT Annual Review – 1 April each year

At the first pay run of the new financial year, you need to review each employee’s ESCT rate to ensure it’s correct (we’ll take care of this for you if you’re an A4 Payroll client)

ESCT thresholds and rates:

$0 – $18,720 → 10.5%
$18,721 – $64,200 → 17.5%
$64,201 – $93,720 → 30%
$93,721 – $216,000 → 33%
$216,001+ → 39%

Payroll Tip:
To determine an employee’s ESCT rate, we add together:

Total gross earnings over the last 12 months plus
Employer KiwiSaver contributions

Example:
$58,000 salary + 3% employer KiwiSaver ($1,740) = $59,740
→ ESCT rate for the 2026/27 year = 17.5%

More info:
Employer Contribution Info

If you have any questions or would like to talk through how these changes affect your business, please don’t hesitate to contact our Payroll Team, we’re always happy to help 😊