With a lot of law changes pending for 2026 and including another general election on Saturday 7th November this will be an interesting year to navigate.
KiwiSaver
From April 1st 2026 KiwiSaver contributions are increasing from 3% to 3.5%. All eligible employees who contribute to KiwiSaver will see their contributions as well as the employer contributions increase.
The employee can apply through
myIR for a temporary rate reduction from Feb 1st which can keep them rate at 3% for up to 12 months. If they opt to do this their employer can match them at the lower rate.
Furthermore, employees from 16 years of age will be able to opt into KiwiSaver (currently 18), but should not be enrolled automatically. Also, note that it is planned to increase contributions again to 4% in 2028.
Be sure that if you use the 'Total Remuneration' approach to KiwiSaver that with the new contribution rates you do not dip below the minimum adult wage rate for staff. Deducting the employer contribution cannot cause the employee to dip below the minimum wage rate.
Minimum Wage
As usual the minimum adult wage increases from April 1st every year. This year the new rate will be
$23.95, starting out and training rates (being 80% of adult) will be at
$19.16 per hour.
Employment Relations Amendment Bill
Has been through the Select Committee stage in Parliament, had changes recommended and assurances from Hon Brooke van Velden those will be adopted. Looking likely the Bill will pass early this year. For more information on the Bill please see our previous
news article here.
Employment Relations (Termination of Employment by Agreement) Amendment Bill
Has been extensively changed by the Select Committee and is now at the Second Reading stage. This Bill offers an employer legal protection to hold discussions with an employee to negotiate an exit (termination) for monetary compensation. We reported on this in
November here.
Employers Leave Bill.
In August 2025 Cabinet agreed a new approach to the issues with the current Holidays Act 2003 and fleshed out new legislation for a replacement Act being far simpler, more workable and fit for purpose. The concept being to be drafted early this year, passed before the election then giving a 2 year timeframe before going live. The draft Bill at this stage is still a work in progress.
For more information on the proposed changes please see
our article here.
Health and safety reforms
Legislative changes as well as a policy changes with WorkSafe NZ are proposed as a refocus of New Zealand’s health and safety framework the aim to refine the cost of compliance for business and reduce unnecessary red tape. The Government have suggested it will be an ongoing graduated approach with the changes without specific timelines at this stage.
Some of the key changes mentioned include:
- Accepting Approved Codes of Practice from industry;
- Require far simpler obligations for small or low-risk businesses operations;
- Limited notification requirements to WorkSafe to significant incidents only;
- Clear distinctions for PCBU's between governance roles & responsibilities and operational duties;
- For recreation organisations clear delineation between landowners and operators
- Better defined boundaries between regulations and HSWA legislation to reduce overlaps and cost of compliance