The Government will introduce legislation this week that is likely to include a change to Kiwisaver policy to help low income workers - costing an additional $700 million over five years.
Under Labour savers could contribute either 4 or 8 per cent of their wage with a government subsidy of up to $20 a week and compulsory employer contributions, rising to 4 per cent by mid 2011.
National's policy was to set contributions at the lower 2 per cent which would be matched by the Government. The savings would go towards its tax cut package.
However, that meant those earning under $52,000 would get far less than those on bigger incomes.
Prime Minister John Key told reporters at his post-Cabinet press conference that ministers considered the issue this morning.
"If you earned $52,000 a year, you pay in at 2 per cent you'd have $1040 as your member tax credit but if you earned $26,000 a year and paid in at 4 per cent under the policy we had you would only be matched at $520. There's some inequity about that and we are considering that issue."
Kiwisaver legislation would be considered by Parliament this week.
Mr Key said if the Government matched dollar for dollar up to $1040 it would cost $700 million over five years.
Asked about how it could be afforded, Mr Key said the Government had considered the fiscal position against equity and details would be revealed soon.
There would be "different moving parts" to the changes.
One suggestion has previously been put up by unions.
They suggested a flat $20 contribution on weekly contributions by savers of $20 or more.