Labour proposes compulsory employer KiwiSaver contributions and a 6% minimum rate

Labour leader Chris Hipkins announced a policy package that would make employer contributions to KiwiSaver compulsory from 1 July 2028, with the mandatory rate rising to 6% by 2032 even when employees reduce or pause their own contributions. The plan sets a default employee contribution of 4%, removes the minimum rate, and prohibits new total-remuneration contracts that absorb employer KiwiSaver payments into wages. It extends employer contributions to workers aged over 65 and maintains them during paid parental leave, while promising more flexible arrangements for self-employed members.

Labour describes the reforms as a way to make KiwiSaver work harder for more New Zealanders and to fund higher government costs through the Employer Superannuation Contribution Tax. Finance spokesperson Barbara Edmonds said the rollout will be phased to give certainty to workers and businesses.