With the adjustments to New Zealand’s Accredited Employer Work Visa (AEWV) happening in March 2025, one key component has gained renewed significance—guaranteeing the market fee of pay. In case you’re an employer trying to rent migrant employees or a employee looking for an AEWV, this can be a essential idea to grasp. However don’t fear, we’re right here to interrupt all of it down for you in easy phrases.
What’s the Market Charge of Pay?
The “market fee” is actually the going fee of pay for New Zealand employees doing an analogous job in the identical subject. It’s how a lot you’d sometimes have to pay a New Zealand citizen or resident to draw them to the function. Relevent immigration instruction (W2.2.15) defines it this fashion to make sure equity within the labour market.
The logic right here is straightforward—paying at or above the market fee protects the wages and dealing circumstances of New Zealanders. It discourages employers from “undercutting” by paying migrant employees lower than what the function is price, which may drive wages down and restrict alternatives for locals.
Put one other manner, providing lower-than-market charges doesn’t simply harm New Zealand employees; it could possibly additionally make it tougher for employers to genuinely declare they will’t discover locals for the function.
Why Does the Market Charge Matter?
After the AEWV adjustments in March 2025, the median wage requirement will now not function a blanket benchmark. This creates larger variability in pay charges for various jobs, which means that immigration officers have to pay nearer consideration as to whether a proposed fee aligns with the market fee.
For employers, this implies your job supply should fastidiously replicate what a New Zealand employee would anticipate to earn in an analogous function. For migrant employees, it ensures your pay fee is truthful and aggressive—not only a shorthand to fill vacancies rapidly.
How Immigration Officers Assess the Market Charge
Immigration officers use completely different strategies to evaluate whether or not a proposed pay fee meets the market fee. These can range relying on how clear and dependable the out there knowledge is.
Single Supply Evaluation
If one supply of knowledge clearly exhibits that the pay fee aligns with the market fee, that might be sufficient. For example, if a trusted job itemizing platform offers current and dependable knowledge, an officer may approve the job verify software without having extra proof.
Take this instance of a Storeperson’s pay:
- A trusted supply like Search Wage Information exhibits that employers have paid $60,000–$70,000 for related roles within the final 12 months.
- Current knowledge and a big pattern dimension make this supply extremely dependable.
If the pay supply matches or exceeds this vary, the job verify may sail by way of with out situation.
A number of Supply Evaluation
However what if the one supply isn’t dependable? For instance, knowledge from Careers NZ may present outdated pay charges (e.g., figures from way back to 2018). If the pay supply doesn’t match clear, present developments, immigration officers could have to seek the advice of a number of sources to succeed in a call.
They might have a look at:
- Job listings (e.g., Search or Commerce Me Jobs).
- Business stories.
- Skilled wage surveys.
By evaluating a number of datasets, officers can kind a well-rounded image earlier than deciding whether or not the market fee is met.
What Occurs If the Market Charge Isn’t Met?
When a pay fee sits nicely beneath the market fee, immigration officers want to find out how far outdoors the anticipated vary it’s. If the distinction is minor—and the employer seems to satisfy different AEWV necessities—officers should still approve the job verify, supplied they imagine New Zealand employees would settle for the job on the given fee.
Nonetheless, when the pay fee is considerably off, this might set off “PPI” (Probably Prejudicial Data). Basically, an officer would elevate a purple flag with the employer, letting them know they should justify the speed to keep away from rejection.
Weighing Conflicting Sources
What if wage sources battle? For example:
- Careers NZ exhibits a Storeperson incomes $47,840-$62,400, whereas Search exhibits $60,000-$70,000.
Right here, the immigration officers officer are instructed to weigh the info fastidiously:
- Careers NZ: Outdated knowledge (2018) with a restricted pattern dimension.
- Search: Current knowledge, that includes salaries disclosed by hundreds of employers, and a big dataset.
Clearly, Search would maintain extra weight because of its recency, reliability, and scale. Choices like this assist guarantee assessments are truthful and constant.
Pay Ranges and Future Pay
Employers should make sure the complete pay vary supplied meets or exceeds the market fee. For instance, when you suggest a variety of $55,000-$70,000 for a job the place the market fee is $60,000-$70,000, the decrease finish of your vary undershoots, creating an issue.
It’s additionally necessary to notice that future pay will increase can’t be used to justify an software. The speed supplied should meet the market fee on the time of the Job Test.
Sensible Suggestions for Employers
In case you’re providing a job to a migrant employee, right here’s methods to get it proper:
Do Your Analysis
- Use dependable, up-to-date sources to find out the market fee for the function.
- Search for knowledge particular to your area, business, and stage of expertise.
Be Clear
Specify the total pay vary in your job supply upfront, guaranteeing it’s above the market fee.
Contemplate Dangers
In case your proposed pay is on the decrease finish of the vary, guarantee there’s sufficient justification to keep away from problems throughout assessments.
The Larger Image
The adjustments to AEWV in March 2025 put employer accountability entrance and centre. By requiring employers to satisfy or exceed market charges, New Zealand ensures equity for its employees whereas making room for expert migrants who really add worth.
For each employers and migrant employees, understanding and respecting the market fee isn’t only a field to tick—it’s a strategy to create truthful alternatives and sustainable financial progress for everybody concerned.
Writer Particulars
Vandana Rai
(LIA 201400900)
Director
Vandana Rai is a Senior Licensed Immigration Adviser and has constructed a repute round her uncommon set of abilities, which might be thought of perfect for her authorized career.
