What You Should Be Reviewing Now 

The new financial year brings several payroll updates. None are overly complex — however, if they’re missed, they can result in compliance issues or payroll discrepancies. 

If Diprose Miller administers your payroll function, the necessary changes will automatically be incorporated into the first pay run in April. 

If not, please ensure that you are complying with the changes below from 1 April. 

Here’s what you should be checking. 

Minimum Wage Increase

Effective 1 April 2026:

• Adult minimum wage: $23.95 per hour (16 years and older)
• Starting-out and training wage: $19.16 per hour

If any employees are paid at or near minimum wage, their pay rates will need to be reviewed and adjusted where necessary.

Important for Salaried Employees (particularly in farming)

Minimum wage obligations still apply to salaried staff based on actual hours worked. Salary averaging is not permitted.

Compliance check:  Annual salary ÷ 26 fortnights ÷ $23.95 = maximum hours per fortnight

If the actual hours worked exceed this, the salary may fall below minimum wage and top-up payments will be required to remain compliant.

Reviewing this early helps avoid last-minute payroll corrections.

KiwiSaver Default Rate Increase

From 1 April 2026, the default KiwiSaver rate increases to 3.5% for both employees and employers.

Key considerations:

• Employees wishing to remain at 3% must apply for a temporary rate reduction through myIR.
• If an employee moves to 3%, the employer contribution may also reduce to 3%.

Where total remuneration packages apply, employment agreements may need updating to reflect the increased employer contribution cost.

Small oversights here can create inconsistencies between payroll and employment agreements.

ACC Earners’ Levy Increase

The ACC earners’ levy will increase to 1.75% (from 1.67%).

As this forms part of PAYE deductions, employees may notice a slight reduction in net pay.

Most payroll software will update automatically - however, it is important to confirm your settings are correct.

Fixed Automatic Wage Payments

If wages are paid using fixed automatic bank payments, changes to:

• Minimum wage
• KiwiSaver rates
• ACC levy



will mean current payments to employees no longer align with PAYE calculations filed with IRD. 

These must be recalculated and updated accordingly. A practical starting point is the IRD PAYE calculator for the 2027 tax year (01/04/26 – 31/03/27). Link here 

Practical Checklist Before 1 April 2026 

• Review all wage and salary rates 
• Confirm KiwiSaver defaults update to 3.5% 
• Check payroll software levy settings 
• If calculating wages manually, test your figures using the IRD 2027 PAYE calculator 
• Update any fixed automatic payments 
• Seek advice early if unsure