Understanding market rate pay under the new AEWV rules
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As of 10 March 2025, Immigration New Zealand (INZ) has removed the median wage requirement from the Accredited Employer Work Visa (AEWV) scheme. This significant policy shift introduces a more flexible, market-driven approach to setting wages for migrant workers.
What has changed?
Previously, employers were required to pay migrant workers at least the national median wage as a condition for AEWV approval. This blanket threshold often posed challenges for industries with naturally lower wage structures.
Under the new policy:
- The requirement to pay AEWV holders the median wage has been removed.
- Employers must pay at least the New Zealand minimum wage, which increased to NZD $23.50 per hour on 1 April 2025.
- Crucially, employers must also ensure that the wage offered aligns with the market rate for the specific role, industry, and region.
This change aims to better reflect actual labour market conditions while maintaining protections against the underpayment of migrant workers.
Understanding ‘market rate’
The ‘market rate’ refers to the typical wage paid to New Zealand workers performing the same or similar roles in comparable locations. INZ assesses this by examining various sources, including:
- Industry salary guides and reports.
- Recent job advertisements on platforms like Seek, Trade Me Jobs, and Careers NZ.
- Historical wage data for similar roles within the company or industry.
If the wage offered is significantly below the market rate, INZ may reject the job check application, leading to delays and additional costs for employers.
Implications for employers
1. Wage setting and job checks
Employers must now provide evidence that the wage offered meets or exceeds the market rate. Failure to do so can result in job check rejections, requiring re-advertisement and resubmission.
2. Visa durations linked to skill levels and wages
Visa durations under the AEWV are influenced by the role’s skill level and the wage offered:
- For ANZSCO skill levels 1–3:
- A 5-year AEWV is available, even if the wage is below the median, provided it meets the market rate.
- For ANZSCO skill levels 4–5:
- A 3-year AEWV is standard.
- A 5-year AEWV may be granted if the wage is at least 1.5 times the median wage.
3. Residency considerations
While the median wage requirement has been removed for AEWV applications, it remains relevant for certain residency pathways. Employers should be aware that offering wages below the median may impact a migrant worker’s eligibility for residency in the future.
Best practices for employers
To navigate the new wage-setting framework effectively:
Conduct thorough market research
Utilise up-to-date salary surveys, job advertisements, and industry reports to determine appropriate wage levels.
Document evidence
Maintain records of the sources used to establish the market rate, as INZ may request this during the job check process.
Review existing wage structures
Assess current employee wages to ensure compliance with the new requirements and adjust where necessary.
Communicate with employees
Inform current and prospective migrant workers about how wage levels may affect their visa conditions and residency options.
Need assistance?
Navigating these changes can be complex. VisaAide’s team of licensed immigration advisers is here to help you understand and comply with the new AEWV requirements.
for personalised guidance tailored to your business needs.
