The new median wage will apply to the Essential Skills Work Visa and the Talent (Accredited Employer) Work Visa. These are the most commonly used work visas in New Zealand and are designed for people who have the skills and qualifications needed to fill shortages in the country's labour market.
The current median wage in New Zealand is $27.76 per hour. The new median wage of NZD $29.66 per hour is a significant increase and it means that employers will need to offer foreign workers a higher salary in order for them to qualify for a work visa. The adoption of the new median wage is part of the government's efforts to ensure that foreign workers are not used to undercut the wages of New Zealand workers. The government wants to ensure that employers are not using foreign workers as a cheap labour source and that all workers are paid a fair wage.
For the Accredited Employer Work Visa (AEWV), migrants must meet the wage threshold in force at the time of their application. This means that if the wage threshold increases between the job check being approved and the migrant applying for the visa, the migrant may need to meet a higher wage threshold than was approved in the job check pay range.
For example, an employer is granted a job check on 1 November 2022 based on the current median wage of $27.76.
The new median wage will also be used to determine the minimum salary that employers must offer to foreign workers in order for them to qualify for a post-study work visa. This visa allows international students who have completed their studies in New Zealand to stay in the country and work for up to three years.
With these sectors being hit hard by Covid-19 the NZ Government initially provided an exemption, to April 2023 with a lower wage threshold of $25.00 per hour. Now there will be a transition away from this exemption in two stages;
To see more information about employing migrants in New Zealand, have a look at the New Zealand Immigration website.