Labour Party proposes compulsory 6% KiwiSaver employer contributions

The Labour Party has announced a major overhaul of the KiwiSaver retirement scheme, proposing to make employer contributions compulsory and increase them to 6 percent by 2032. Under the plan, employer contributions would become mandatory starting July 1, 2028, even if an employee chooses to reduce or pause their own contributions.

Key features of the proposal include extending employer contributions to workers over 65 and those on paid parental leave. While the employer rate would rise, Labour intends to provide workers with more flexibility by setting the default employee contribution rate at 4 percent and removing the current minimum contribution rate, allowing individuals to adjust based on their financial circumstances.

Labour leaders Chris Hipkins and Barbara Edmonds stated the policy aims to help New Zealanders build greater wealth and financial security for retirement, while also increasing domestic capital for the national economy. The announcement positions retirement savings as a central issue for the 2026 election.