For sole traders, KiwiSaver is entirely voluntary – there’s no payroll system quietly sorting it in the background, or employer contributions to boost your balance.
So if you’re not actively contributing yourself, you could actually be leaving free money on the table. That free money has a name: the KiwiSaver government contribution. Here’s how it works, and what you need to do to actually get it.
What is the government contribution?
For every $1 you put into your KiwiSaver fund yourself, the government adds another $0.25, up to a maximum of $260.72 a year. For sole traders, this is one of the few real benefits to the KiwiSaver system – and we want you to make the most of it.
The government contribution actually used to be worth more: $0.50 for every $1, up to $521.43. That changed as part of Budget 2025.
📖 For our opinion on the cuts to the government contribution, check out this explainer. Spoiler alert: we’re not fans.
How much do you need to put in?
To get the full $260.72, you need to have contributed at least $1,042.86 of your own money to your KiwiSaver account in the twelve months before 30 June each year.
If you contribute less than this amount, you’ll generally still get a portion of the government contribution – it’s proportionate to what you put in. You do need to meet a few eligibility criteria to qualify, so it’s worth a quick check on the IRD website to make sure you’re in.
Aroha is a freelance landscape gardener from Hamilton. In her first year she sets up an automatic $50 transfer into her KiwiSaver account every month, which adds up to $600 over the year – well short of the $1,042.86 mark. Come 1 July, IRD credits her account with a proportional amount rather than the full top-up. The next year she nudges her monthly transfer up to $90, which adds up to $1,080 over the year, clearing the threshold – so this time she gets the full $260.72. She didn’t have to think about it once.
Keep that going for ten years and you’ve picked up roughly $2,600 in free government money, before any investment growth on top. Basically, it’s one of the easiest wins available to a sole trader – you just have to remember to contribute enough, on time.
Make it automatic
The tricky part for sole traders isn’t the maths, it’s the follow-through. There’s no automatic system pulling money from your payslip, so it’s entirely on you to get the contribution in before the cutoff.
Unless, that is, you use Hnry Allocations. Hnry Allocations lets you send a percentage (or a fixed amount) of every payment you receive straight into your KiwiSaver account – no manual transfers, no June scramble, no missed deadline.
📖 For the full picture, check out our guide to KiwiSaver for sole traders.
Let Hnry handle the rest
Basically, we’ve got your back on the admin side of self-employment. For 1% + GST, capped at $1,500 a year, Hnry:
- calculates and pays your income tax whenever you get paid
- files your GST returns and tax return automatically
- handles your ACC levies
- covers student loan repayments (optional)
- automates your KiwiSaver contributions, so you never miss the government top-up (optional)
It’s all part of the service – no hidden fees, no faff. Join Hnry today and never think about tax again!