New Zealand raises minimum wage to NZD$31.61

Highlights: Wage requirement in New Zealand raised to NZD$31.61

• New Zealand has increased the wage requirement for foreign workers from February 28, 2024.
• The median wage requirement for foreign workers increased to NZD$31.61
• Reports state that most New Zealand work visas reflect the latest median wage increase.
• The Accredited Employer Work Visa (AEWV) is exempted from the increased wage requirement. 

 

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Wage threshold in New Zealand

New Zealand has recently increased the minimum wage threshold that is eligible for certain visa types. The increase in wage threshold came into effect from February 28, 2024. 

The Immigration New Zealand reported that wage requirements increased from NZD$29.66 to NZD$31.61 per hour. 

The list of visas that were affected is mentioned below: 

• Work to Residence visas
• Parent category residence class visa
• Green List Straight to Residence
• Skilled Migrant Category

The increase in minimum wage requirement also affects the Transport Sector Work to Residence Visa, excluding bus drivers.

 

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Implications and exemption of AEWV

Immigration New Zealand has exempted the Accredited Employer Work Visa from the list of visas affected by the increase in wage threshold. Following this exemption, the government will have more time to explore other alternatives to determine skills without relying solely on the median wage.

Below are the visas that are either set at or indexed to the median wage rate from February 2023: 

• The AEWV-linked work visas
• The Partner of a Worker Work Visa
• Subsequent Migrant Exploitation Protection Visas
• Variation of conditions for AEWVs, legacy Essential Skills work visas, interim visas granted under the Skilled Migrant Category and a Partner of a Worker work visas

 

Note: Regardless of their current wage, immigrants relying on AEWV for the Skilled Residence pathway are still required to meet the higher threshold of NZD 31.61 per hour while applying.

 

Sector agreements for different sectors

Specific sectors like tourism and hospitality operate under sector agreements, which allow them to pay below the average AEWV wage. 

The minimum wage threshold for these sectors are given below:

Industrial Sector	The current minimum wage threshold
Tourism and Hospitality	NZD 28.18 per hour
Transport	NZD 28 per hour
Care Workforce	NZD 26.16 per hour
Care Workforce Work to Residence Visa	NZD 28.25 per hour

 

 

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Web Story:  New Zealand raises minimum wage to NZD$31.61