The Annual General Adjustment is a reflection of the Consumer Price Index changes and the average wage growth for the last 12 month period. The CPI has had an increase of 3.11% from the December 2024 quarter to the December 2025 quarter. Increases to KiwiSaver, minimum wage and Job Seeker support are among the changes in effect tomorrow.
Minimum wage is increasing from $23.50 to $23.95 per hour. The training wage will shift from $18.80 to $19.16 per hour.
The default contribution rate is set to automatically increase from 3% to 3.5% on April 1. The employer contributions will rise again to 4% in 2028. Although government contributions have recently decreased to a maximum of $260.72, previously $521.43 per annum. Eligibility for government contributions have widened for 16- and 17-year-olds since July last year. If elected, Christopher Luxon says he will gradually increase KiwiSaver contributions to match Australia's Superannuation rate of 12% by 2032.
NZ Super and Veterans Pension
For those living alone, NZ Super will increase by $33.46 a fortnight. The fortnightly income will increase from $1,076.84 to $1,110.30.
ACC earners levies will rise from $1.67 per every $100 to $1.75 for every $100.
Student allowance and loan-living costs
Students can expect increases to their allowances and loan-living costs. Student loan living costs (under the M tax code ) will increase from $323.43 to $333.48 per week. Students who are under 24 and eligible for the allowance will receive a $10.05 increase from $323.33 to $333.38.
Income and asset limits for student support services are also set to increase which will broaden the eligibility criteria. Students may become eligible for services they previously were not, such as the accommodation benefit, childcare assistance and disability allowance.
The Ministry of Social Development’s recent quarterly report found that 223,512 people were receiving Jobseeker Support. This figure is a 4.8 percent increase compared to December 2024. The Job Seeker benefit for those 18-19 living at home will increase to $276.46 from $268.13 after tax. For someone over 25, they will have an $11.23 increase from $361.32 to $372.55.
Support for a sole parent will rise from $521.52 to $505.80 per week, after tax.
The disability allowance of $80.35 will be increasing to $82.85 after tax. The allowance income limits are also increasing based on age brackets. Disability Support Services will see changes to the flexible funding approach tomorrow. This is one part of a wider change in disability funding announced by Louise Upston in September 2025.
More information about how your income will be affected is available on the Ministry of Social Development website.
Changes to benefit and payment rates from 1 April 2026 - Work and Income
