20/02/2025
Changes to the Accredited Employer Work Visa (AEWV) and median wage.
A number of changes will be made to the AEWV in March 2025. Changes will also be made to the median wage in February 2025.
In December 2024, the Government announced reforms to the AEWV to make the settings more flexible and responsive to the differing needs of businesses in certain sectors and regions. As a result of this, Immigration New Zealand (INZ) will be rolling out a number of changes over the course of 2025.
Phase 2 of these changes are as follows.
Remove the median wage requirement from AEWV and Specific Purpose Work Visa (SPWV):
From 10 March 2025, employers recruiting workers under the AEWV and seasonal SPWV policies will no longer be required to pay the median wage. Instead, there will be no set pay thresholds except the New Zealand minimum wage (currently NZD $23.15 an hour, increasing to NZD $23.50 an hour on 1 April).
Employers will however, still be expected to pay migrant workers on par with their New Zealand counterparts (the New Zealand market rate).
Sector Agreements which provided an exemption to the median wage will be removed alongside this change. Sector Agreements which offer residence pathways will continue to do so, with no changes to the wage rate required to gain residence.The removal of sector agreements means that roles previously covered by sector agreements for below median wage jobs are no longer subject to restrictions such as caps or limitations on visa duration and instead will be treated the same as other jobs of the same skill level.
Current AEWV holders should continue to be paid in line with their employment agreement and visa conditions.
Reducing the work experience requirement for migrants from 3 years to 2 years:
From 10 March 2025 the work experience requirement for migrants will be reduced from 3 years to 2 years.
Employers still have to check that their migrant worker meets the threshold, and applicants will still need to provide evidence that they meet the 2-year threshold.
This change will still make sure that migrants have enough experience to help minimise the risks of exploitation.
Amending the requirement for employers to engage with the Ministry of Social Development (MSD):
From 10 March 2025 the requirement for employers to engage with the MSD will be now become declaration based.
They will need to declare in good faith, that they have advertised lower skilled roles (ANZSCO skill level 4 and 5) with MSD and interviewed candidates who may be suitable for the role. Employers will be required to retain evidence of their engagement as they may be requested to provide it. This can be done alongside recruitment employers will already be undertaking in the domestic labour market.
Increasing the visa duration for ANZSCO Level 4 and 5 AEWV holders to 3 years:
From 10 March 2025 the visa length for new ANZSCO Level 4 and 5 AEWVs will be extended to 3 years, matching the total time they can stay in New Zealand on 1 or more AEWVs (their maximum continuous stay).
Increasing the income threshold for supporting dependent children:
From 10 March 2025 the income threshold will be increased from an annual threshold of NZD $43,322.76 to NZD $55,844. This is 80% of the median wage (aligning with eligibility for partner work rights) based on an annual, 40-hour work week. It will be updated annually in line with changes to the median wage.
The previous income threshold will continue to apply where a child held a visa on, or had applied for a visa, before 10 March – this ensures that children who are already here do not have to leave if their parent can meet the old threshold but cannot meet the new one.
Recognition of higher ANZSCO skill levels:
With INZ transitioning from the Australian and New Zealand Standard Classification of Occupations (ANZSCO) to the National Occupation List (NOL), there are differences with the classification of some roles.
So that applicants are not disadvantaged, from 10 March 2025 the following occupations will be treated as ANZSCO skill level 3 to align with their skill level in the NOL:
-Cook (351411)
-Pet groomer (361113)
-Kennel hand (361115)
-Nanny (421113)
-Fitness instructor (452111)
-Scaffolder (821712)
-Slaughterer (831212)
There are also 4 other roles that will be recognised as ANZSCO skill level 3 where the employer has specified that the job needs either 3 years of work experience or a level 4 qualification, as part of the job check. This ensures skilled workers can be retained in certain critical jobs. These 4 roles are:
-Agricultural and horticultural mobile plant operator (721111)
-Excavator operator (721214)
-Forklift driver (721311)
-Mobile plant operators not elsewhere classified (721999)
Updates to interim visa work rights:
In April, there will be further changes coming into effect regarding work rights for people on interim visas while they are awaiting the outcome of an AEWV application. This includes:
- allowing AEWV applicants to have interim work rights if they apply while holding any type of work visa or from a student visa that permits work during term time, and
enabling time spent on an interim visa that allows work, to be considered when calculating a migrant's total continuous stay under the AEWV, as well as for gaining work experience needed for work-to-residence pathways.
Median wage changes:
From 28 February 2025, AEWV holders who want to support a partner will still be required to meet the wage threshold, which is increasing to NZD $26.85 an hour.
From 28 February 2025, income thresholds for sponsors under the Parent Category will indexed to the new median wage of NZD $33.56 an hour.
These changes are based off Statistics New Zealand’s publication of median hourly earnings for the previous year’s June quarter and is intended to ensure migrants who are supporting a partner or parent have the financial means to do so.
Find out how these changes may affect you:
The incoming changes to the AEWV on 10 March 2025 will impact both employers who hire migrants and workers who are applying for an AEWV.
