New Zealand is making a significant move to adapt to the evolving needs of its workforce with recent reforms to the Accredited Employer Work Visa. One of the major changes is the removal of median wage thresholds for AEWV roles and the introduction of a revised earning benchmark, creating a fairer and more responsive immigration system. This proactive adjustment ensures New Zealand can attract and retain the skilled workers it needs to thrive in a dynamic global market.
With the elimination of the median wage requirement for all roles under the AEWV program, no longer will the median wage serve as a determining factor in assessing job eligibility. Instead, employers are obligated to advertise job vacancies and offer AEWV workers compensation that aligns with the prevailing market rate for their specific role and workplace location. While this adjustment ensures businesses maintain competitive wages, it does not alter any pre-existing employment agreements. Wages required for AEWV workers to qualify for residency applications remain unaffected.
In February 2024, New Zealand introduced a new median wage rate of NZD $31.61 per hour into specific parts of its immigration system, including the Skilled Migrant Category, Green List Straight to Residence, Work to Residence visas, and Parent Category residence visas. This adjustment also affected the Transport Sector Work to Residence Visa, excluding bus drivers. However, the Accredited Employer Work Visa (AEWV) remained at the current rate of NZD $29.66 per hour. This pause allowed for the consideration of alternatives to ensure the new median wage threshold attracted necessary workers and addressed genuine skill shortages. Migrants holding an AEWV at the current rate continued to gain work experience for Skilled Residence, but new applicants had to meet the higher threshold of NZD $31.61 per hour.
This policy revision has not only alleviated employers’ burdens but has also been perceived as a move to establish wage equity across industries. By removing the median wage as a criterion, the system avoids distorting wages, which had previously led to instances where migrant workers were paid more than their local counterparts.
A new earning threshold has also been introduced for AEWV migrants who wish to bring their children to New Zealand. To meet eligibility criteria, these workers must now earn a minimum annual income of NZ$55,844. This figure represents the first adjustment to the earning benchmark since its establishment in 2019. By implementing this change, the government aims to ensure that migrants supporting dependents have the financial stability to sustain their families in New Zealand’s economic environment.
Under the revised guidelines, while employers actively recruit migrant workers, they are encouraged to balance workforce diversity and domestic hiring priorities. The new earning threshold will help harmonize these efforts while safeguarding employment opportunities for New Zealand citizens. By setting a clear benchmark for income, the government creates a framework that both employers and employees can navigate more confidently.
The elimination of the median wage requirement for the Accredited Employer Work Visa (AEWV) in New Zealand has sparked a range of responses. Employers have largely embraced this change, viewing it as an opportunity to recruit more migrant workers and tackle skill shortages. Conversely, some migrant workers have expressed concerns about potential wage inconsistencies and decreased earning potential. Immigration experts have lauded the reform, considering it a simplification of the visa process that will attract more skilled workers. Public opinion is divided; some see it as a necessary step to address labor market demands, while others worry about the risks of exploitation and wage suppression. Overall, this policy shift represents a major change in balancing economic needs with labor considerations.
From a policy perspective, these updates reflect the government’s effort to streamline the immigration process while addressing both economic demands and societal expectations. The removal of the wage threshold is seen as a pragmatic response to employer feedback, particularly from industries struggling to fill skill shortages. Meanwhile, the revision of the income threshold for migrants with children ensures a more sustainable and equitable approach to family-based migration.
