What AEWV changes mean for employers: Key updates from 10 March 

Contents: 

• Removal of median wage requirements
• What about sector agreements?
• MSD engagement updates: New declaration-based process
  
• Job check changes and hiring migrant workers
• What employers need to do differently from 10 March
  

From 10 March 2025, several changes to the Accredited Employer Work Visa (AEWV) scheme will take effect. These updates aim to make the system more responsive to workforce needs while maintaining compliance requirements for employers hiring migrant workers.

If your business employs—or plans to employ—migrant workers, here’s what you need to know.

Removal of median wage requirements

One of the biggest changes is that employers will no longer need to pay AEWV holders at or above the median wage. Instead:

• Migrant workers must be paid at least the New Zealand minimum wage (NZD $23.15 per hour, increasing to NZD $23.50 per hour from 1 April 2025).
• Pay rates must still meet the market rate for the role and location.

What about sector agreements?

Previously, some industries operated under sector agreements, allowing for exemptions to median wage rules. From 10 March 2025:

• All sector agreements providing median wage exemptions will be removed.
• Sector agreements offering residence pathways will remain, with no changes to the wage thresholds required for residence.
• Roles previously covered by sector agreements will now be treated the same as other roles at their skill level—meaning no more caps or visa duration limits linked to these agreements.

If your business previously relied on a sector agreement, now is the time to review how this change affects your workforce planning.

MSD engagement updates: New declaration-based process

From 10 March 2025, employers hiring for ANZSCO skill level 4 and 5 roles must still engage with the Ministry of Social Development (MSD)—but the process will change.

Instead of obtaining an Engagement Check report, employers will now:

1. Advertise the role with MSD.
2. Interview any candidates who may be suitable.
3. Declare in good faith that this process has been followed when submitting a job check application.

What does this mean for employers?

• You no longer need an official MSD report before applying for a job check.
• However, you must retain evidence of engagement with MSD, as INZ may request proof during audits.
• MSD engagement can now happen alongside your other recruitment efforts.

This update reduces administrative delays while ensuring employers continue prioritising New Zealand workers.

Job check changes and hiring migrant workers

Job checks remain a core requirement of the AEWV process, but some aspects are changing.

ANZSCO skill level changes

Some roles will be reclassified to a higher skill level under the National Occupation List (NOL). From 10 March, certain roles will move from ANZSCO skill level 4 to skill level 3, meaning:

• Shorter advertising periods (14 days instead of 21).
• No requirement to engage with MSD.

INZ has confirmed that job check applications in progress on 10 March will be assessed under the new skill level classifications.

Visa duration updates

• AEWV holders in ANZSCO skill level 4 and 5 roles will now be eligible for three-year work visas.
• If a job check application is in progress on 10 March, the new rules will apply when the AEWV application is submitted.

What employers need to do differently from 10 March

• Review pay structures: Ensure roles meet minimum wage and market rate requirements.
• Update recruitment processes: If hiring for ANZSCO level 4 or 5 roles, be prepared to declare MSD engagement rather than submit an engagement check report.
• Check if job classifications have changed: If hiring for a role that is now classified as skill level 3, you may have fewer advertising and compliance requirements.
• Plan for longer visa durations: Lower-skilled AEWV holders may now stay for three years, reducing visa renewal cycles.

Need help navigating these changes?

With these AEWV updates approaching, it’s important to ensure your business remains compliant and prepared. Understanding these changes now can help streamline hiring processes and workforce planning for 2025.

📞 Book a workforce or growth planning strategy session to discuss how these updates may impact your business.