KiwiSaver - Temporary Rate Reduction
Overview
From 1 February 2026, Employees can apply to Inland Revenue for a Temporary Rate Reduction of their KiwiSaver contribution to 3%.
The Inland Revenue will send an acceptance letter that shows start and end dates of the Temporary Rate Reduction.
Approved rate reductions will take effect from 1 April 2026.
An Employee can revoke their temporary rate reduction early by completing a KS2 form and giving it to the Employer.
The Employee will need to reapply to use the rate reduction again with the same Employer.
The Temporary Rate Reduction option is not available to Employees aged 65 and over.
More information about Temporary Rate Reductions can be found on the Inland Revenue website by clicking here.
Entering the Temporary Rate Reduction in iPayroll
To record a Temporary Rate Reduction:
- Go to People > View People.
- Select the relevant Employee.
- Scroll to the KiwiSaver section.
- From the KiwiSaver Status dropdown, select Temporary Rate Reduction.
- Enter the date the reduction will end in the Rate Reduction End Date field.
- Adjust the KiwiSaver Employee Rate to 3%.
- Adjust the Employer Contribution Rate, if required
- Click Save.
Changing the KiwiSaver Rates in the Personal Details will automatically update the KiwiSaver percentages in the Timesheet Template and Timesheet Entry in any open payrolls.
- KSR are KiwiSaver Employer Contributions
- KSE are KiwiSaver Employee Contributions