New Zealand announces new wage thresholds for skilled migrant visa category

Immigration New Zealand has raised the pay limits for the Skilled Migrant Category, Green List Straight to Resident and Work to Residence visas, and Parent Category resident class visas to match the median hourly wage (NZD 31.61). The new Wage thresholds for these categories have been made effective from February 28, 2024.

Wage thresholds are rates Immigration New Zealand (INZ) uses to calculate entitlement to some visas. The wage threshold is the lowest amount you can be paid to be granted the visa, unless your role has an exemption. The wage thresholds are used as an indicator of the skill level of the job and are updated regularly to keep up with inflation.

Earlier, NZD$29.66 an hour was the median wage used in New Zealand. All thresholds are tied to the New Zealand median wage. This means when the median wage increases, the wage threshold for the visa will increase. The median wage threshold amount is updated every year in February.

The wage threshold for the Transport Sector Work to Residence Visa will also increase in line with the new median wage (excluding bus drivers). Further, the expiry of the tourism and hospitality wage exemption and the transport sector agreement have been delayed.

This increase does not apply to the Accredited Employer Work Visa (AEWV), which the Government signalled in December will remain at the current rate of NZD$29.66 an hour. For consistency, the pause also applies to AEWV-linked work visas that are either set at or indexed to the median wage rate from February 2023 (NZD$29.66 an hour) including:

Migrants who already hold an AEWV which is paid at the paused wage rate (NZD$29.66 an hour) may continue to accrue work experience for Skilled Residence, despite the increase in wage requirements. Accredited Employer Work Visa (AEWV) and partner of worker median wage rates will not increase in February 2024. AEWV jobs must pay at least NZD$29.66 an hour (the median wage), unless an exemption applies or they are part of a sector agreement.

AEWV holders will need to have a job or job offer that meets the skilled residence pathway rate in line with the median wage at the time that they apply.

Migrants who do not yet hold an AEWV and are looking to apply for one of the Skilled Residence pathways in the future should note that to meet eligibility they will be required to meet the higher threshold (NZD$31.61 an hour) rather than the lower one they need for an AEWV.

All sector agreements and exemptions to the median wage will also remain in place with current wage rates until further decisions are taken on the use of the median wage under the AEWV.

In addition, the New Zealand minimum wage will increase on 1 April 2024. This means that the wage threshold for all Recognised Seasonal Employer (RSE) workers will also increase to align with the new minimum wage. RSE workers must be paid at the New Zealand minimum wage plus 10 percent. This means that from 1 April 2024 employers in this sector must pay workers NZD$25.47 per hour to ensure that RSE remuneration continues to increase in line with the minimum wage.

Currently, RSE workers are required to be paid a minimum of NZD$24.97 per hour for actual hours worked. Employers who fail to update wages in line with the new minimum hourly wage would breach their Agreement to Recruit (ATR) commitments. If a worker transfers from one RSE employer to another, the new employment agreement must also comply with minimum pay.