Increasing your KiwiSaver contributions is one of the most impactful financial moves you can make. It takes about 5 minutes and can add hundreds of thousands of dollars to your retirement balance over time. Here’s exactly how to do it.
Two Ways to Increase Contributions
1. Increase your payroll contribution rate (via myIR)
This is the primary method. Your contribution rate is deducted from your gross pay each pay cycle, and it also triggers additional employer contributions (up to their cap — most employers contribute a flat 3% regardless of your rate).
Available rates: 3%, 4%, 6%, 8%, 10%
2. Make voluntary top-up contributions
You can deposit extra money directly to your KiwiSaver provider at any time, in any amount. These don’t affect your payroll deductions and don’t attract employer contributions — but they do count toward your MTC calculation.
Both methods work; increasing your payroll rate is usually more effective because it also influences employer contributions.
How to Change Your Contribution Rate (myIR Method)
Step 1: Go to myir.ird.govt.nz and log in
Step 2: Select “KiwiSaver” from your account list
Step 3: Click “Change contribution rate”
Step 4: Select your new rate (3%, 4%, 6%, 8%, or 10%)
Step 5: Confirm — IRD sends a deduction notice to your employer
Processing time: Your employer will usually apply the new rate within 1–2 pay cycles of receiving the notice from IRD. You’ll see the change reflected in your next or second-next payslip.
How to Change Your Rate Without myIR
If you don’t have a myIR account:
- Complete a KS2 form (Employee’s KiwiSaver information — download from ird.govt.nz)
- Give it to your employer
- Your employer updates your rate from the next available pay cycle
This method bypasses IRD and goes directly to your employer. It’s the fallback if myIR isn’t accessible.
How to Make a Voluntary Top-Up
Via your KiwiSaver provider:
- Log in to your provider’s online portal or app
- Navigate to “contributions” or “top up”
- Use the bank account and reference provided
- Set up a one-off or regular automatic payment from your internet banking
Via myIR:
- Log in to myIR
- Select your KiwiSaver account
- Choose “make a voluntary contribution”
- Complete the payment details
Direct-to-provider is faster (1–3 business days vs 7–10 via IRD).
When Does the New Rate Take Effect?
Your new payroll rate takes effect at the start of the next pay cycle after your employer receives the IRD notification. There is no backdating.
For example, if you change your rate on 15 March and your pay period ends 20 March, your employer may not be able to apply it until the following pay period (from 21 March onward).
Can You Change Rate Multiple Times?
Yes — there is no limit on how often you can change your contribution rate. You can switch between rates as frequently as your circumstances require (pay rise, job change, cash flow pressure, etc.).
What Happens to Your Employer’s Contribution When You Increase Your Rate?
Your employer’s minimum contribution is 3% of your gross pay — and this doesn’t increase just because you increase your rate beyond 3%. Employer contributions are capped at their stated policy (minimum 3%).
Some employers voluntarily match higher rates — for example, matching up to 4% or 6%. Check your employment agreement or ask HR whether your employer has any matching policy above 3%.
The Dollar Impact of Increasing Your Rate
On a $70,000 salary, increasing from 3% to 6%:
| 3% rate | 6% rate | Difference | |
|---|---|---|---|
| Your annual contribution | $2,100 | $4,200 | +$2,100 |
| Employer contribution (3%) | ~$1,680 net | ~$1,680 net | No change |
| MTC (full, both rates hit threshold) | $521 | $521 | No change |
| Total to KiwiSaver/year | ~$4,301 | ~$6,401 | +$2,100 |
| Projected extra at 65 (30 years, 7% return) | — | — | +~$200,000 |
The extra $2,100/year (about $40/week from your take-home) becomes approximately $200,000 extra at retirement through compounding. The cost feels small; the outcome is substantial.
When to Consider Increasing Your Rate
- After a pay rise — increase your rate at the same time so your take-home still increases; the extra feels invisible
- After clearing high-interest debt — redirect those repayments into KiwiSaver
- If your balance is behind the average for your age — a rate increase is the most reliable catch-up tool
- When you get a new job — use the fresh-start effect to lock in a higher rate before you adjust to the new income level
Can Your Employer Refuse to Accept the Rate Change?
No — your employer must apply the contribution rate notified by IRD. The KiwiSaver Act requires employers to deduct and remit at the rate you select. They cannot override it.