Remuneration threshold increases in Skilled Migrant &Essential Skills Policy
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Back in 2017 August, changes to the Skilled Migrant and Essential Skills policies were implemented, aimed at:
- Targeting and ensuring the migrants who bring economic benefits to New Zealand and improve skill composition of the people getting residence under Skill Migrant Category
- Giving first preference to New Zealanders when it comes to jobs and at the same time keeping an liberal access to temporary migrants skills that are necessary for New Zealand’s economic development.
With the objective or improving the apt evaluation of skill and in turn bringing value to New Zealand, the changes included introducing remuneration thresholds for both categories viz. Skilled Migrant and Essential SkillsWork.
Skilled Migrant and Essential Skills policy details announced
15 January 2018 onwards, the following changes will take place in the Skilled Migrant Category:
| Threshold | Prior to 15 January | From 15 January |
| Threshold for skilled employment in an occupation at ANZSCO 1-3 | $23.49 per hour or above (or the equivalent annual salary) | $24.29 per hour or above (or the equivalent annual salary) |
| Threshold for skilled employment in an occupation at ANZSCO 4-5, or which is not included in ANZSCO | $35.24 per hour or above (or the equivalent annual salary) | $36.44 per hour or above (or the equivalent annual salary) |
| Threshold to earn bonus points | $46.98 per hour or above (or the equivalent annual salary) | $48.58 per hour or above (or the equivalent annual salary) |
The Essential Skills work category will undergo the following changes post 15th January, 2018:
| Threshold | Prior to 15 January | From 15 January |
| Threshold for mid-skilled employment in an occupation at ANZSCO 1-3 | $19.97 per hour or above (or the equivalent annual salary) | $20.65 per hour or above (or the equivalent annual salary) |
| Threshold for higher skilled employment in any occupation (including those at ANZSCO 4-5) | $35.24 per hour or above (or the equivalent annual salary) | $36.44 per hour or above (or the equivalent annual salary) |
Why are these changes occurring now?
The remuneration thresholds are mapped to New Zealand median income. Based on the New Zealand income data, the remuneration requirement are to be updated at the end of every year (which is release in September). The year, the changes have been delayed until January in order to give employers as well as the migrant’s time to adjust to new thresholds.
What do I do if I am a current Essential Skills work visa holder and my job does not meet the new threshold? Also, in case I am an employer and one of my staff hold a current visa but their wage does not meet the new threshold?
Important to note that people currently holding visas won’t be affected. For the visas already been granted, the changes and thresholds relating to the duration or condition will stay unaffected.
Only new application made on or after 15th January will be assessed against the new threshold. This would also mean that the conditions or duration for the next visa can be different.For eg: A chef that gets paid $20 an hour, in the current state, would be termed as mid-skilled since the occupation is ANZSCO level 2 and the pay is above the threshold which is $19.97. However, if the same person applies for further visa after 15th January, he will be considered as low-skilled unless his pay increases to $20.65
What if my application is undecided by the time that I apply or applied for a work visa under Essential Skills before 15 January 2018? Will Immigration New Zealand assess my skill level based on the old thresholds or the new ones?
In case your application was received by Immigration New Zealand before 15 January 2018, the old thresholds will apply to your visa application
If I am an employer and have vouced my support an essential Skills work visa, but the person cannot get his application in before 15th January, 2018 , what happens in this case.
New Thresholds apply if an application is received and accepted after 15 January 2018. This is even if the employment agreement has been signed prior to 15 January 2018.
What happens if I was invited to apply for the Skilled Migrant Category under the old thresholds?
The threshold in place on the date your expression of interest (EOI) that was selected from the Pool (If the selection results in an invitation to apply) is the remuneration threshold against which you will be assessed. For example, if your EOI was selected on 10th January 2018 and you were invited to apply on 20th January, 2018, in this case the old remuneration thresholds will apply.
