Labour Party Proposes Compulsory 6 Percent KiwiSaver Employer Contributions

The Labour Party announced a new KiwiSaver policy that would make employer contributions compulsory starting July 1, 2028. Under the proposal, the minimum employer contribution rate would rise to 6 percent by 2032, regardless of whether employees choose to reduce or pause their own contributions. The plan also sets a default employee contribution rate of 4 percent, removes the minimum contribution requirement for employees, and extends employer contributions to parents on paid parental leave and workers over 65.

To address the current cost-of-living crisis, Labour will not make employee contributions compulsory. Finance spokesperson Barbara Edmonds argued this approach provides workers more flexibility during financial hardship than competing proposals. The party also intends to ban new total remuneration contracts that absorb employer contributions into salaries and explore options for self-employed New Zealanders.

National Party representative Nicola Willis dismissed the policy as a "watered-down version" of National's own plan, claiming it is less ambitious. Simplicity KiwiSaver managing director Sam Stubbs also criticized the proposal for lacking provisions for children's accounts, a feature proposed by both the National Party and New Zealand First. While National and New Zealand First have suggested automatic enrolment at birth, Labour leader Chris Hipkins stated that automatic enrolment is not currently being considered.