New median wage to apply from February 2023

The new median wage will apply to the Essential Skills Work Visa and the Talent (Accredited Employer) Work Visa. These are the most commonly used work visas in New Zealand and are designed for people who have the skills and qualifications needed to fill shortages in the country's labour market.

The current median wage in New Zealand is $27.76 per hour. The new median wage of NZD $29.66 per hour is a significant increase and it means that employers will need to offer foreign workers a higher salary in order for them to qualify for a work visa. The adoption of the new median wage is part of the government's efforts to ensure that foreign workers are not used to undercut the wages of New Zealand workers. The government wants to ensure that employers are not using foreign workers as a cheap labour source and that all workers are paid a fair wage.

For the Accredited Employer Work Visa (AEWV), migrants must meet the wage threshold in force at the time of their application. This means that if the wage threshold increases between the job check being approved and the migrant applying for the visa, the migrant may need to meet a higher wage threshold than was approved in the job check pay range.

For example, an employer is granted a job check on 1 November 2022 based on the current median wage of $27.76.

• If the migrant worker they offer employment to applies for an Accredited Employer work visa before 27 February 2023, the worker must be paid at least the median of $27.76. This is because $27.76 will be the median wage in the immigration system at time of application.
• If the migrant worker they offer employment to applies for an Accredited Employer work visa on or after 27 February 2023, the worker must be paid at least the new median of $29.66.

The new median wage will also be used to determine the minimum salary that employers must offer to foreign workers in order for them to qualify for a post-study work visa. This visa allows international students who have completed their studies in New Zealand to stay in the country and work for up to three years.

Tourism and hospitality median wage exception

With these sectors being hit hard by Covid-19 the NZ Government initially provided an exemption, to April 2023 with a lower wage threshold of $25.00 per hour. Now there will be a transition away from this exemption in two stages;

• In April 2023 the median wage exception will increase from $25 to $28.18, or 95% of the new median wage.
• In April 2024 the exception will end, and these roles will be required to be paid 100% of the median wage.

Find out more

To see more information about employing migrants in New Zealand, have a look at the New Zealand Immigration website.