Labour wants to make employer contributions to KiwiSaver compulsory, rising to 6%, extend employer contributions to workers over 65, make the default employee contribution rate at 4%, as well as removing the minimum contribution rate.
Labour leader Chris Hipkins is also promising to ban total remuneration contracts that factor in employer KiwiSaver contributions, and provide a KiwiSaver contribution to those on paid parental leave.
"KiwiSaver is one of Labour’s proudest legacies. We created it, and now we’re going to make it work better for people,” he said on Sunday.
Finance spokesperson Barbara Edmonds said, under Labour's plan, from July 1, 2028, employer contributions would become compulsory and the extension to those on paid parental leave and the employer contribution to workers over 65 would also kick in.
The employer contribution would lift to 6% by 2032, regardless if an employee reduced or paused their contribution. The default rate for workers would be at 4%.
The Government is already gradually increasing the default rate to 4% for both employers and employees, rising from 3.5% this year up to 4% in April, 2028.
Edmonds said they would also broaden who benefits from KiwiSaver and would be “working with self-employed New Zealanders on more flexible ways to build their savings in the scheme.”
Labour is the latest party to announce sweeping promises to change up KiwiSaver.
New Zealand First was the first party to announce its KiwiSaver election policy last year, proposing to increase employee and employer contributions to 10% and making KiwiSaver compulsory. At the time, NZ First leader Winston Peters said KiwiSavers and employers would receive tax cuts to cover the increases.
Peters also promised to make KiwiSaver compulsory from birth, with an automatic Crown contribution of $1000.
Then, Prime Minister Christopher Luxon announced that if re-elected in November's election, National would make KiwiSaver or an equivalent scheme compulsory for workers, automatically enrol every baby born in New Zealand along with a $1500 Baby Boost payment, and make a contribution into a parent’s KiwiSaver while they’re on paid parental leave.
That followed a promise to increase contribution rates for employers and employees from April 2029, rising by 0.5% per year until April 2032 - to a 6% contribution rate for employers and employees each.
Labour's policy document is here.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.