From higher pay and bigger retirement contributions to fuel relief and benefit increases, Kiwis will see several financial changes kicking in from April 1.
The beginning of the month marks the start of a new financial year, and with it a "moderate" increase to the minimum wage, alongside benefit and student support adjustments that could impact many households.
1News explains what’s changing, who it affects, and how it could impact your household budget.
Everything you need to know about the upcoming KiwiSaver changes - watch on TVNZ+
Minimum wage
Minimum wage workers will get a small increase, with the adult rate rising to $23.95 an hour from April 1 — up 45 cents.
Workplace Relations and Safety Minister Brooke van Velden announced the "moderate" 2% increase in the hourly wage in December last year, taking effect from April 1, 2026.
"This new rate will benefit around 122,500 working New Zealanders and strikes a balance between keeping up with the cost of living and not adding further pressure on the costs of running businesses," she said in December.
Both van Velden and the Ministry of Business, Innovation and Employment (MBIE) recommended a 2% increase to $23.95.
The starting out and training minimum wage rates were set at $19.16, remaining at 80% of the adult minimum wage.
Labour and the Green Party described the increase as "a weak response to the cost of living" and "measly".
Legislation necessitates an annual review of the minimum wage by the Minister of Workplace Relations and Safety.
Kiwisaver default contribution rate
KiwiSaver changes also kick in from April 1, with the default contribution rate for both employees and employers rising from 3% to 3.5%.
The increase means slightly less take-home pay for workers but more going into retirement savings. The rate is set to climb further to 4% by April 2028, as part of a phased plan announced by Finance Minister Nicola Willis in last year's Budget.
"To lift savings and provide greater security for Kiwis, we're raising the default rate of employee and matching employer KiwiSaver contributions," she said at the time.
Everything you need to know about the upcoming KiwiSaver changes - watch on TVNZ+
Workers will have the option to temporarily opt down to the current 3% rate for 12 months.
The changes also extend employer contributions to younger workers. KiwiSaver members aged 16 and 17 will become eligible for matching employer contributions, provided they are in paid work, enrolled in the scheme, and making their own contributions.
PM says the relief is targeted at the genuinely squeezed middle lower income working New Zealanders. (Source: 1News)
Fuel relief
Some families will get targeted relief from rising fuel costs brought on by the ongoing conflict in the Middle East, with about 143,000 working households with children set to receive an extra $50 a week through a boost to the in-work tax credit.
The payment is available to low- to middle-income families with dependent children, where at least one parent is in paid work.
The increase takes effect from April 1, with payments made automatically — though families won't see the extra money immediately. Those paid weekly are expected to receive it from April 7, while fortnightly payments will begin from April 14.
Around 14,000 additional families will also become eligible, though many will receive less than the full $50 due to the payment reducing as income rises.
The boost is temporary and will run for up to a year, ending on April 1, 2027 — or earlier if the price of 91 octane fuel drops below $3 a litre for four consecutive weeks.
Benefit, pension increases
Benefits and pensions will also increase from April 1 as part of the Government's annual adjustment.
Most payments from the Ministry of Social Development will rise by about 3%, in line with inflation.
However, a law change passed in 2024 means benefit increases are now tied to inflation rather than wage growth — a shift that could see payments rise more slowly than incomes over time.
New Zealand Superannuation and the veteran's pension are calculated differently and will increase by 2.9%, reflecting average wage growth. From April 1, a single person living alone on super will receive $1,110.30 a fortnight, while those in couples will get $854.08 each.
A full breakdown of updated rates is available on the Work and Income website.
StudyLink support
Student support payments will increase from April 1 as part of the Government’s Annual General Adjustment, reflecting changes in the cost of living and wage growth.
Student Allowances and Student Loan Living Costs will rise automatically, meaning most students won’t need to take any action. Income and asset limits for several forms of assistance will also increase, allowing more people to access support such as the Accommodation Benefit, Childcare Assistance and Disability Allowance.
The changes will be phased into payments across April, with full increases applying from the week beginning April 13. New rates will be visible in MyStudyLink from April 1.
Flexible disability funding
Changes to flexible disability funding intend those receiving support to have more choice, control and certainty, following feedback from the disability community during consultation last year.
The changes apply to people receiving flexible funding such as Individualised Funding, Carer Support and some hosted Enabling Good Lives personal budgets, but do not affect Choice in Community Living.
Existing funding allocations will remain the same, with earlier plans to reset budgets based on past spending dropped as the system becomes more stable.
Purchasing rules will also be removed, allowing people more freedom to choose the supports that work best for them, while still staying within their agreed plans and budgets. Additional support will be provided to help people manage their funding, with hosts offering tailored guidance based on individual needs and experience.
New cystic fibrosis medicines funded
Pharmac will widen access to two existing cystic fibrosis treatments and fund a new medicine from April 1, giving more people access to treatment earlier.
Access will be expanded for Trikafta and Kalydeco to include all people with eligible genetic mutations, removing previous age‑related funding restrictions. A new medicine, Alyftrek, will also be funded for the first time for people with eligible mutations.
About 35 people are expected to benefit in the first year, rising to an estimated 47 people within five years, with the changes allowing treatment to begin as soon as it is clinically appropriate.
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