As of 10 March 2025, Immigration New Zealand (INZ) has eliminated the median wage requirement from the Accredited Employer Work Visa (AEWV) scheme. This important coverage shift introduces a extra versatile, market-driven method to setting wages for migrant staff.
What has modified?
Beforehand, employers have been required to pay migrant staff a minimum of the nationwide median wage as a situation for AEWV approval. This blanket threshold usually posed challenges for industries with naturally decrease wage constructions.
Below the brand new coverage:
- The requirement to pay AEWV holders the median wage has been eliminated.
- Employers should pay a minimum of the New Zealand minimal wage, which elevated to NZD $23.50 per hour on 1 April 2025.
- Crucially, employers should additionally make sure that the wage supplied aligns with the market charge for the precise function, trade, and area.
This variation goals to raised mirror precise labour market situations whereas sustaining protections towards the underpayment of migrant staff.
Understanding ‘market charge’
The ‘market charge’ refers back to the typical wage paid to New Zealand staff performing the identical or related roles in comparable areas. INZ assesses this by inspecting varied sources, together with:
- Trade wage guides and reviews.
- Latest job ads on platforms like Search, Commerce Me Jobs, and Careers NZ.
- Historic wage information for related roles throughout the firm or trade.
If the wage supplied is considerably beneath the market charge, INZ might reject the job verify software, resulting in delays and extra prices for employers.
Implications for employers
1. Wage setting and job checks
Employers should now present proof that the wage supplied meets or exceeds the market charge. Failure to take action can lead to job verify rejections, requiring re-advertisement and resubmission.
2. Visa durations linked to talent ranges and wages
Visa durations below the AEWV are influenced by the function’s talent degree and the wage supplied:
- For ANZSCO talent ranges 1–3:
- A 5-year AEWV is accessible, even when the wage is beneath the median, supplied it meets the market charge.
- For ANZSCO talent ranges 4–5:
- A 3-year AEWV is normal.
- A 5-year AEWV could also be granted if the wage is a minimum of 1.5 instances the median wage.
3. Residency concerns
Whereas the median wage requirement has been eliminated for AEWV functions, it stays related for sure residency pathways. Employers needs to be conscious that providing wages beneath the median might impression a migrant employee’s eligibility for residency sooner or later.
Greatest practices for employers
To navigate the brand new wage-setting framework successfully:
Conduct thorough market analysis
Utilise up-to-date wage surveys, job ads, and trade reviews to find out acceptable wage ranges.
Doc proof
Preserve data of the sources used to ascertain the market charge, as INZ might request this through the job verify course of.
Overview present wage constructions
Assess present worker wages to make sure compliance with the brand new necessities and modify the place essential.
Talk with workers
Inform present and potential migrant staff about how wage ranges might have an effect on their visa situations and residency choices.
Want help?
Navigating these modifications will be advanced. VisaAide’s group of licensed immigration advisers is right here that will help you perceive and adjust to the brand new AEWV necessities.
for personalised steering tailor-made to what you are promoting wants.
