February 20, 2025
New Zealand’s immigration system is set for significant changes in 2025, with updates to the Accredited Employer Work Visa (AEWV) and median wage requirements. These reforms, announced by the government in December 2024, aim to make the system more adaptable to the needs of different industries and regions. Immigration New Zealand (INZ) will implement these updates gradually throughout the year.
Key Changes Taking Effect from March 10, 2025
1. Removal of Median Wage Requirement for AEWV and Specific Purpose Work Visa (SPWV)
Employers hiring workers under the AEWV and SPWV will no longer be required to meet the median wage threshold. Instead, they must ensure workers receive at least the minimum wage, which will increase to NZD $23.50 per hour on April 1. However, migrant workers must still be paid the same market rate as their New Zealand counterparts.
With this change, sector agreements that previously allowed exemptions to the median wage will be removed. However, those that provide a pathway to residence will remain unchanged. The removal of sector agreements will also eliminate job restrictions, such as visa duration limits and employment caps, for roles that were previously covered.
Existing AEWV holders must continue receiving wages as per their employment agreements and visa conditions.
2. Work Experience Requirement Reduced from Three Years to Two
The minimum work experience requirement for migrant workers will be reduced from three years to two. Employers must still verify that applicants meet this new threshold, and applicants will need to provide proof of their experience. This adjustment aims to strike a balance between easing entry barriers for skilled workers while maintaining safeguards against exploitation.
3. Simplified Employer Engagement with the Ministry of Social Development (MSD)
Employers seeking to fill lower-skilled roles (ANZSCO skill levels 4 and 5) must continue advertising positions with MSD and interviewing suitable candidates. However, starting on March 10, this process will be declaration-based. Employers will need to retain evidence of their engagement in case INZ requests verification. This will align with ongoing domestic recruitment practices.
4. Visa Duration for Low-Skilled Workers Extended to Three Years
AEWV holders in ANZSCO skill levels 4 and 5 will now be eligible for a three-year visa. This aligns with the maximum continuous stay period for these workers.
5. Increased Income Threshold for Supporting Dependent Children
From March 10, the annual income requirement for AEWV holders supporting dependent children will increase from NZD $43,322.76 to NZD $55,844. This adjustment reflects 80% of the median wage and will be updated annually. However, children already in New Zealand under the previous threshold will not be affected.
6. Recognition of Higher Skill Levels in Certain Occupations
With INZ transitioning from the ANZSCO classification system to the National Occupation List (NOL), some roles will now be recognized at a higher skill level. From March 10, 2025, the following jobs will be classified as ANZSCO skill level 3:
- Cook
- Pet groomer
- Kennel hand
- Nanny
- Fitness instructor
- Scaffolder
- Slaughterer
Additionally, four roles will be classified as skill level 3 if the job requires three years of experience or a Level 4 qualification:
- Agricultural and horticultural mobile plant operator
- Excavator operator
- Forklift driver
- Mobile plant operators (not elsewhere classified)
Changes to Interim Visa Work Rights (Effective April 2025)
New rules will allow AEWV applicants to work while on an interim visa if they apply while holding a valid work visa or a student visa that allows work. Furthermore, time spent on an interim visa that permits work will count toward a migrant’s total continuous stay and work experience requirements for residence pathways.
Median Wage Updates (Effective February 28, 2025)
- AEWV holders wishing to support a partner must meet a new wage threshold of NZD $26.85 per hour.
- The income threshold for sponsors under the Parent Category will be adjusted in line with the new median wage of NZD $33.56 per hour.
These wage adjustments are based on Statistics New Zealand’s median hourly earnings data for the previous June quarter and are intended to ensure that migrants supporting family members have sufficient financial resources.
Impact on Employers and Migrant Workers
These changes will affect both employers hiring migrant workers and those applying for AEWVs. Employers must adapt to the new wage policies, recruitment processes, and skill classifications, while workers need to understand how these adjustments may impact their visa applications and work eligibility.
For more details, visit the official Immigration New Zealand website or connect with ICL Licensed Immigration Advisor
Reference
About ICL Immigration
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We specialise in a broad spectrum of visa services, including work, residency, student visas, and business-related services like employer accreditation, ensuring personalised solutions for individuals and businesses aiming to navigate New Zealand’s immigration landscape successfully.
