Key Payroll, ACC, and KiwiSaver Changes Taking Effect From 1 April 2026

ACC Changes (From 1 April 2026)

There are some key changes happening across ACC Levies. Below is a summary of these changes.

ACC Earners’ Levy (Employees)

• Increases from $1.67 to $1.75 per $100 of earnings.

• Employees will see slightly lower take‑home pay.

‍

ACC Work Levy (Paid by Employers)

This is the part most small businesses forget — every employer also pays a Work Levy on employee wages.

According to MBIE’s levy review, the average Work Levy is rising gradually across 2025–28, including the 2026/27 year when you will feel it in payroll costs.

Proposed Work Levy for 2026/27: $0.69 per $100 of liable earnings (up 4.5%).

ACC confirms there are wider upcoming changes affecting business levies, experience ratings, discounts, and how instalments are treated.

From April 2026, all businesses will face Work Levy changes to “keep ACC fair and sustainable”.

Instalment plans will now attract interest, increasing cost for those paying levies over time.

‍Why this matters for you

• Payroll costs increase beyond just KiwiSaver and minimum wage.

• Clients who are tight on cashflow or running labour heavy operations will notice this change.

• Budget and forecast updates are even more important.

• The average Work Levy for 2026/27 is increasing to $0.69 per $100.

• This is an additional payroll cost for all employers.

• Instalment plans for ACC levies will now attract interest.

‍

Important for Employers

• Employers should expect an increase in their ACC invoices

‍

ACC Levies for Self‑Employed / Shareholder‑Employees

• Applies to sole traders, owner‑operators and shareholder‑employees.

• Levies rise in line with the Earners’ and Work Accounts.

• Maximum liable earnings increase to $156,641 from 1 April 2026.

‍

Important for Employers

• Employers should expect an increase in their ACC invoices

‍

Experience Rating & No Claims Discount Changes

• ACC is removing the No‑Claims Discount.

• Some Classification Units are being modernised.

• Medium and large businesses in Experience Rating will see changes.

‍

MBIE confirmed changes to the Experience Rating framework, removing the No Claims Discount and adjusting thresholds for medical/treatment costs used in levy calculations.
‍

This particularly affects industries with historically good safety records (like electrical, plumbing, and trades with low accident rates) because they lose a cost-saving mechanism they previously relied on. No claims Discount and adjusting thresholds for medical/treatment costs used in levy calculations.

‍

KiwiSaver Changes for 2026

Minimum Employee Contribution Increases

• Minimum employee contribution increases from 3% to 3.5%.

• Employees can apply for a temporary reduction back to 3% for 3–12 months.

• Applications must be made by the employee.

‍

Employer Contribution Increases

• Employer KiwiSaver minimum increases to 3.5%.

‍

Government Contribution Changes

• Government contribution reduces from $521.43 to $260.72 per year.

• Earners over $180k are no longer eligible after 1 July 2025.

‍

Minimum Wage Increase (From 1 April 2026)

• Adult minimum wage increases to $23.95 per hour.

‍

Practical Impacts on Small Businesses

Increased Labour Costs

• Higher employer KiwiSaver, ACC Work Levy, and minimum wage.

‍

Need for Updated Budgets & Cashflow

• Review 2026–27 budgets.

• Adjust pricing if needed.

‍

Payroll System Adjustments

• Ensure updated KiwiSaver %, minimum wage, and ACC levies.

‍

‍

‍

‍