In a recent development, Immigration New Zealand has adjusted the wage thresholds for various visa categories to align with the country’s median hourly wage of NZD 31.61.
Effective from February 28, 2024, these changes impact the Skilled Migrant Category, Green List Straight to Resident, Work to Residence, and Parent Category resident class visas.Wage thresholds play a crucial role in visa entitlement calculations, acting as the minimum payment required for visa approval, unless exempt. These thresholds reflect job skill levels and are regularly updated to keep pace with inflation.
The recent adjustment reflects an increase from the previous median wage of NZD 29.66 an hour.It’s noteworthy that the adjustment excludes the Accredited Employer Work Visa (AEWV), which will maintain its current rate of NZD 29.66 an hour.
The decision also applies to AEWV-linked work visas set at or indexed to the median wage rate from February 2023. Existing AEWV holders can continue accruing work experience for Skilled Residence despite the increased wage requirements.
The update also highlights the delay in the expiry of the tourism and hospitality wage exemption and the transport sector agreement. However, AEWV holders seeking Skilled Residence pathways in the future must meet the higher threshold of NZD 31.61 an hour.
Looking ahead, all sector agreements and exemptions to the median wage will remain in place until further decisions are made regarding their use under the AEWV. Additionally, the New Zealand minimum wage is set to increase on April 1, 2024, impacting the wage threshold for Recognised Seasonal Employer (RSE) workers, aligning with the new minimum wage plus 10 percent.This adjustment ensures that RSE workers receive a minimum of NZD 25.47 per hour from April 1, 2024, maintaining compliance with their Agreement to Recruit (ATR) commitments. Employers failing to update wages in line with the new minimum hourly wage risk breaching ATR commitments, emphasizing the importance of staying informed on these regulatory changes.
These updates showcase New Zealand’s commitment to maintaining fair and competitive wages, reflecting the dynamic nature of its labor market and the evolving needs of various industries. Applicants and employers alike must stay abreast of these changes to navigate the visa landscape effectively.
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