Updated 29 July 2025

Changes to KiwiSaver announced by the government in May’s Budget will affect complying superannuation funds like UniSaver. From 1 July 2025:

• the rate of government contributions halved to 25c for every dollar you contribute up to a maximum of $260.72 a year
• members with total earnings over $180,000 are no longer eligible to receive government contributions. 
• 16 and 17-year olds are eligible to join UniSaver’s locked section and will qualify for government contributions. Compulsory employer contributions for these members will apply from 1 April 2026.

The default employee and employer contribution rates to KiwiSaver will increase from 3% to 4% of salary in two steps over three years from 1 April 2026. However, the current position on contributions for members of the locked section is unclear. The Taxation (Budget Measures) Bill (No. 2) which introduces the changes indicated in the Budget has not changed the minimum employee contribution rate for complying superannuation funds. It remains at 3%. However, the compulsory employer contribution may increase to 4%. We understand it is likely there will be further law changes to address the inconsistency between employee and employer contribution rates for locked accounts. We do not have further information at this time but will update this note when we know more.

Switching contributions to the standard section

The principal benefit of belonging to the locked section is to qualify for government contributions. If you no longer qualify for government contributions or otherwise no longer wish to contribute to the locked section, you can divert all your contributions to the standard section. Use form 3 change contributions [PDF, 80 KB] (complete section 2). You won’t be able to withdraw the balance of your locked accounts unless you are age 65 or over. Similarly, you can’t transfer the balance of your locked accounts to the standard section if you’re aged under 65. However, you may transfer the balance of your locked accounts to a KiwiSaver scheme if you wish. Use form 10 in-service withdrawal [PDF, 96 KB] (option 2).