December 30th, 2024 at 02:30 am

New Zealand Updates Work Visa Policies: Wage Caps & Experience Requirements

New Zealand is facing a significant shortage of skilled labor. In response, the government has implemented important changes to the Accredited Employer Work Visa (AEWV) program. These reforms aim to streamline hiring processes, address skill gaps, and support employers in meeting workforce demands. Here’s what you need to know.

Key Changes to the AEWV Program

The AEWV program has undergone major updates, including the removal of the median wage threshold and reduced experience requirements for skilled migrants. Additionally, new pathways for seasonal workers will soon become available.

1. Removal of Median Wage Threshold

Beginning in March 2025, New Zealand will eliminate the median wage threshold for AEWV and Specific Purpose Work Visa (SPWV) roles. Employers must still offer market-rate salaries based on job location and position. This update simplifies hiring procedures while maintaining existing employment agreements and wage requirements for residence permits.

2. New Earnings Threshold for Migrants

To bring children to New Zealand, AEWV migrants must now meet a revised annual earnings threshold of NZ$55,844. This figure has remained unchanged since 2019 and serves as a benchmark for applicants supporting dependents while working in the country.

3. Reduced Experience Requirements

The government is lowering the required work experience for AEWV applicants from three years to two. This change expands the pool of qualified skilled workers, making it easier for employers to fill critical positions.

4. Seasonal Visa Pathways

In November 2025, New Zealand will introduce two new visa pathways for seasonal workers:

• 3-Year Multi-Entry Visa: Designed for experienced workers.
• 7-Month Single-Entry Visa: Targeted at less-skilled seasonal workers.

The existing temporary seasonal pathways will remain available until these options launch.

5. Extended Visa Duration for Low-Skill Roles

For jobs classified as ANZSCO skill levels 4 or 5, the visa duration for AEWV holders will increase from two years (plus a one-year extension) to a continuous three-year period. This aligns with the maximum stay permitted for such workers. Current visa holders with a two-year permit may apply for an additional one-year AEWV if they meet the requirements.

Streamlining the Immigration Process

The New Zealand government is also streamlining the immigration process by revising the Job Check procedure, reducing processing times, and simplifying Work and Income engagement requirements.

1. Revised Job Check Procedure

Immigration New Zealand (INZ) aims to make the Job Check process more efficient. This change targets low-risk employers and will help businesses navigate the immigration system effectively.

2. Reduced Processing Times

INZ has made significant progress in reducing processing times for Employer Accreditation. The average time has decreased from 62 days to just 14 days, allowing for quicker hiring.

Supporting Migrant Workers

The New Zealand government is committed to supporting migrant workers through interim work rights and simplified engagement requirements.

1. Interim Work Rights Expansion

Starting in April 2025, interim work rights will extend to AEWV applicants transitioning from other work or student visas. This ensures that migrants can maintain employment while their applications are processed.

2. Amendments to Work and Income Engagement

Employers hiring for ANZSCO skill level 4 or 5 roles will no longer face a mandatory 21-day engagement timeframe with Work and Income. Instead, a declaration-based system will require them to confirm that they have advertised jobs in good faith and interviewed suitable candidates.

Implementation Timeline

These reforms will roll out in four phases beginning in January 2025. Employers and migrants should stay updated on specific timelines and requirements for each stage.

Conclusion

New Zealand’s updated visa policies demonstrate a commitment to balancing labor market needs with streamlined processes for employers and workers. By lowering barriers and introducing new pathways, the country aims to attract a diverse and skilled workforce to address critical shortages.