Good Times For Employers Of Migrant Workers

Life just got easier for employers wanting to hire migrants on Accredited Employer work visas.

Starting this month, employers no longer need to pay the median wage (formerly $29.66/hour) to new employees hired under this visa category.

Now they only need to pay the “market rate” – which could be as low as the minimum wage for low-skilled occupations.

The Government has been generous to employers in other ways

But it’s not just about pay rates—employers have gained several other advantages under the Government’s new AEWV settings.

From now on, low-skilled workers (such as cleaners and retail staff) can be approved three-year work visas instead of two. Higher-skilled workers still get five-year visas.

In theory, employers still need to make genuine attempts to recruit New Zealand citizens or residents before applying to Immigration New Zealand for a “job check” approval.

However, the Government has included two provisions which make it easier for employers who wish to hire workers from overseas instead of New Zealand workers:

• Immigration New Zealand will accept declarations from employers that they have “engaged with Work & Income New Zealand (W & I) in good faith” to try to find New Zealand workers; and

• INZ will also accept declarations that employers did not find any suitable Kiwi workers through W & I or other advertising.

The new policy allows INZ to ask for evidence of these, but the emphasis is on accepting employers at their word.

Also, employers won’t need to do any advertising or list positions with W & I if their current employees are extending their visas (for a maximum stay of five years).

Even more generosity

The Government has also been generous in upgrading some occupations from “low-skilled” (i.e. ANZSCO Level 4 or 5) to “high-skilled” (ANZSCO Level 1-3).

Now if you’re an employer who wants to hire a cook, a nanny, a scaffolder, a fitness instructor, a slaughterer, or someone who works with pets, you only need to advertise positions for two weeks instead of three, you don’t need to list positions with W & I, and your overseas workers can now be approved five-year visas.

Another way of upgrading a low-skilled occupation to a high-skilled one is for employers to claim that extra qualifications or work experience are required for the positions being offered. For example, a caregiver in a rest home who is paid the minimum wage can be upgraded to Skill Level 3 from Skill Level 4 and approved a five-year work visa instead of three years.

Will employers pay their migrant workers less in future?

In the long run, yes.

People who already hold AEWVs will have to be paid at their current rates of pay.

However, new employees can be paid at the “market rate.” For most occupations, this is likely to be lower than the $29.66/hour previously required for Accredited Employer work visa applications.

The “market rate” is defined is the rate which New Zealanders are paid to undertake the same work that is being offered to a migrant.

However, the market rate is typically expressed as a pay range, often referring to sources such as the Careers New Zealand website.

Under the previous Essential Skills work visa category, which also required that migrant workers be paid the “market rate," INZ used to accept employment offers at the lower end of the range.

So, for example, someone who pours concrete could be paid the minimum wage ($23.50/hour from 1 April) or as high as $30/hour, according to the Careers website.

Will INZ approve job checks for concrete workers paid the minimum wage? The new AEWV rules allow them to.

My view

It’s good for employers that they can retain migrant employees for longer, especially at a time when New Zealand is losing skilled workers to Australia in record numbers.

Ultimately, migrant workers who are paid less in the future will undercut the labour market, leading to lower pay rates for New Zealand workers in low-skilled jobs roles.

And don’t expect employers to hire many Kiwis on the dole – it just got easier not to do so.

With this month’s changes, the Government has enabled a new “high trust” model of accepting New Zealand employers at their word.

And we know how that turned out last time.



Ankur Sabharwal is a New Zealand licensed immigration adviser and the owner of Auckland-based immigration advisory Visa Matters. Ankur specialises in complex immigration matters. His previous article discussed how migrants acquitted of crimes are still being deported.

DISCLAIMER: This article does not constitute immigration advice. Individuals need to seek personal advice from an NZ licensed immigration adviser or lawyer to assess their unique situation. Ankur can be contacted at info@visamatters.co.nz.