Changes to the Accredited Employer Work Visa (AEWV) and Median Wage: Key Updates

Changes to the Accredited Employer Work Visa (AEWV) and Median Wage: Key Updates

As of March 2025, there will be significant changes to New Zealand's Accredited Employer Work Visa (AEWV) and median wage requirements, announced by the Government in December 2024. These updates aim to make the AEWV settings more flexible and responsive to the needs of businesses in various sectors and regions. The adjustments will take effect in phases, with some changes starting in February and others in March 2025.

Key Updates:

1. Removal of Median Wage Requirement for AEWV and Specific Purpose Work Visa (SPWV):

   • Effective from 10 March 2025, employers hiring workers under the AEWV and seasonal SPWV will no longer be required to pay the median wage. The only pay threshold will be the New Zealand minimum wage, which will increase from NZD $23.15 to NZD $23.50 an hour on 1 April 2025.

   • Employers are still expected to pay migrant workers in line with New Zealand market rates.

   • Sector Agreements that previously exempted employers from the median wage requirement will be removed. However, those agreements that offer residence pathways will remain unchanged, and no wage adjustments are necessary to qualify for residency.

2. Reduction in Work Experience Requirement:

   • Effective from 10 March 2025, the work experience requirement for migrants will decrease from 3 years to 2 years, helping to broaden opportunities for skilled migrants.

   • Employers must ensure workers meet the 2-year experience threshold and provide appropriate documentation.

3. Changes to Employer Engagement with the Ministry of Social Development (MSD):

   • Effective from 10 March 2025, employers will no longer be required to directly engage with the MSD when recruiting for lower-skilled roles (ANZSCO skill level 4 and 5). Instead, they will declare in good faith that they have advertised these roles and interviewed potential candidates from the local workforce.

   • Employers will need to retain evidence of their recruitment efforts for possible verification.

4. Extended Visa Duration for AEWV Holders at ANZSCO Levels 4 and 5:

   • Effective from 10 March 2025, the visa duration for new AEWV holders at ANZSCO skill levels 4 and 5 will be extended to 3 years, matching the total period they can remain in New Zealand under one or more AEWVs.

5. Increased Income Threshold for Supporting Dependent Children:

   • Effective from 10 March 2025, the income threshold for sponsoring dependent children will increase from NZD $43,322.76 to NZD $55,844, aligned with 80% of the median wage for a 40-hour work week. This threshold will be updated annually based on median wage changes.

6. Recognition of Higher ANZSCO Skill Levels:

   • Starting 10 March 2025, certain occupations will be treated as ANZSCO skill level 3 to align with their skill level in the National Occupation List (NOL). Affected roles include:

     • Cook

     • Pet Groomer

     • Kennel Hand

     • Nanny

     • Fitness Instructor

     • Scaffolder

     • Slaughterer

   • Employers specifying a job that requires 3 years of work experience or a level 4 qualification will also see these roles recognized as ANZSCO skill level 3.

7. Interim Visa Work Rights:

   • April 2025 will bring further updates on work rights for individuals on interim visas. This includes granting work rights to AEWV applicants while they await the outcome of their application.

8. Median Wage Changes for Partner and Parent Categories:

   • Effective from 28 February 2025, AEWV holders wishing to support a partner will need to meet an increased wage threshold of NZD $26.85 an hour.

   • For sponsors under the Parent Category, the income threshold will rise to NZD $33.56 an hour, based on the updated median wage.

Source: INZ