Wage Thresholds Change For Residency And Work Visa Applications

2 February 2018

On 15 January this year Immigration New Zealand (INZ) raised the thresholds for Essential Skills work visa and Skilled Migrant residency visa applications.

The increases are small, and result from changes in the median income levels in New Zealand. In September 2017, Statistics New Zealand announced that the average earnings from salaries and wages had risen to $50,000. INZ index its remuneration thresholds against the New Zealand median income, hence the need for an increase.

The new thresholds apply to any application made on or after 15 January 2018. Salary equivalent is calculated by multiplying the hourly rate by 40 (being 40 hours per week) and then by 52 (being 52 weeks of the year).

Threshold changes- Essential Skills work visa

Thresholds

(can be expressed as a salary)

Prior to 15 January 2018

From 15 January 2018

Threshold for mid-skilled employment in an occupation at ANZSCO 1-3

$19.97 per hour or above

$20.65 per hour or above

Threshold for higher skilled employment in any occupation (including those at ANZSCO 4-5)

$35.24 per hour or above

$36.44 per hour or above

Threshold changes- Skilled Migrant Category

Threshold for skilled employment in an occupation at ANZSCO 1-3	$23.49 per hour or above	$24.29 per hour or above
Threshold for skilled employment in an occupation at ANZSCO 4-5, or which is not included in ANZSCO	$35.24 per hour or above	$36.44 per hour or above
Threshold to earn bonus points.	$46.98 per hour or above	$48.58 per hour or above

Remuneration rates is an important element of any application to INZ. Evidence about pay rates and the actual hours worked are required in any visa application based on employment. Remuneration levels must also march market rates for applicant’s role. A salary offered below what the role would normally attract in the relevant industry, even if it is above the salary bands, will likely result in a declined application.

If you or would like assistance with applying for an Essential Skills Work Visa, or you employ migrants and require advice on these changes, get in touch today.