New Laws Boost New Zealand Wages

New Zealand authorities have recently announced an increase in wage thresholds for various work visas, effective from February 28th. Immigration New Zealand (INZ) made this decision to align with the latest median wage increase in the country. The revised threshold, set at NZD$31.61 per hour based on the June 2023 median wage, will apply to several visa categories, including the Skilled Migrant Category, Green List Straight to Residence, Work to Residence visas, and Parent Category residence class visa.

However, the Accredited Employer Work Visa (AEWV) will remain unchanged at NZD$29.66 per hour. The decision to maintain the current threshold for AEWV is part of INZ’s exploration of alternative methods for assessing skill levels. The INZ announcement explained that this pause allows time for decisions on alternative measures to the median wage threshold, ensuring that it attracts the needed workers for New Zealand while addressing genuine skill shortages.

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The government has also indicated that this pause extends to AEWV-linked work visas, including the Partner of a Worker Work Visa, variation of conditions for AEWVs, Legacy Essential Skills work visas, interim visas granted under the Skilled Migrant Category, and Partner of a Worker work visas and subsequent Migrant Exploitation Protection Visas.

Migrant workers earning below the temporarily suspended wage rate of $29.66 per hour can still accumulate work experience for Skilled Residence, despite the increase in the wage threshold. The government clarified that migrants who do not yet hold an AEWV but intend to apply for one of the Skilled Residence pathways in the future should note that they will be required to meet the higher threshold of NZD$31.61 per hour, rather than the lower one needed for an AEWV.

It’s important to note that the wage threshold for the Transport Sector Work to Residence Visa will also be increased in accordance with the new median wage, excluding bus drivers from this adjustment.

The INZ statement highlighted the significance of wage thresholds, indicating that they represent the minimum amount an individual must be paid to be eligible for the visa, unless the specific role has an exemption. Additionally, wage thresholds serve as indicators of the skill level associated with the job, and these rates are regularly updated to keep pace with inflation.