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Major Reforms to New Zealand’s Accredited Employer Work Visa and Wage Requirements

25 February 2025

Major Reforms to New Zealand’s Accredited Employer Work Visa and Wage Requirements

In a bid to make New Zealand’s immigration framework more flexible and responsive to the needs of both employers and migrant workers, the Government announced sweeping reforms to the Accredited Employer Work Visa (AEWV) and associated wage requirements in December 2024. These changes, which will be rolled out in phases throughout 2025, are set to impact businesses, prospective migrants, and their families.

Below is an overview of the key changes coming into effect:

1. Removal of the Median Wage Requirement

Effective 10 March 2025
Employers recruiting workers under the AEWV and the seasonal Specific Purpose Work Visa (SPWV) will no longer be bound by a fixed median wage requirement. Instead, the only wage floor will be the New Zealand minimum wage—currently set at NZD $23.15 per hour, with an increase to NZD $23.50 per hour on 1 April 2025.

What This Means:

  • Employers are expected to pay migrant workers wages in line with the prevailing market rate in New Zealand.
  • Exemptions previously provided by Sector Agreements for roles paying below the median wage will be removed. However, Sector Agreements that offer a pathway to residence remain unaffected.
  • Current AEWV holders will continue to receive pay as per their existing employment agreements and visa conditions.

2. Reduced Work Experience Requirement

Effective 10 March 2025
The work experience threshold for migrants will be lowered from 3 years to 2 years. Employers must verify that candidates meet this new requirement by providing appropriate evidence of their experience. This adjustment is designed to ensure that workers have sufficient experience while also broadening the pool of eligible applicants, thereby reducing the risk of exploitation.


3. Updated Employer Engagement with the Ministry of Social Development

Effective 10 March 2025
Employers will now follow a declaration-based system when engaging with the Ministry of Social Development (MSD). They must declare in good faith that they have advertised available lower-skilled roles (ANZSCO skill levels 4 and 5) and interviewed suitable local candidates. Employers should keep records of these recruitment efforts, as they may be required to provide evidence upon request.


4. Extended Visa Duration for Lower Skilled Roles

Effective 10 March 2025
For new AEWV applicants in ANZSCO Levels 4 and 5, the visa duration will be extended to 3 years. This change aligns the visa length with the maximum continuous stay permitted under the AEWV, offering greater stability for both employers and employees.


5. Adjusted Income Threshold for Supporting Dependent Children

Effective 10 March 2025
To support family unity, the income threshold for sponsoring dependent children will increase from NZD $43,322.76 to NZD $55,844 per annum. This figure, which represents 80% of the median wage for a 40-hour work week, will be updated annually in line with median wage adjustments.
Note: Children who held or applied for a visa before 10 March will continue to be assessed under the previous threshold, ensuring they remain in New Zealand without disruption.


6. Recognition of Higher ANZSCO Skill Levels

As New Zealand transitions from the Australian and New Zealand Standard Classification of Occupations (ANZSCO) to the National Occupation List (NOL), certain roles will now be reclassified to better reflect their skill level. Effective 10 March 2025, the following occupations will be treated as ANZSCO skill level 3:

  • Cook (351411)
  • Pet Groomer (361113)
  • Kennel Hand (361115)
  • Nanny (421113)
  • Fitness Instructor (452111)
  • Scaffolder (821712)
  • Slaughterer (831212)

Additionally, four roles will be recognised as ANZSCO skill level 3 when employers specify that the job requires either 3 years of experience or a level 4 qualification. These roles include:

  • Agricultural and Horticultural Mobile Plant Operator (721111)
  • Excavator Operator (721214)
  • Forklift Driver (721311)
  • Mobile Plant Operators Not Elsewhere Classified (721999)

This reclassification ensures that skilled workers continue to be retained in critical sectors.


7. Updates to Interim Visa Work Rights

Coming in April 2025
Further enhancements will be made for those on interim visas while awaiting the outcome of an AEWV application. Key updates include:

  • Granting interim work rights to applicants who apply while holding any type of work visa or a student visa with work rights.
  • Counting time spent on an interim visa (with work rights) towards both the total continuous stay under the AEWV and the work experience required for work-to-residence pathways.

8. Revised Median Wage Adjustments

Effective 28 February 2025
Changes to the median wage will also affect AEWV holders who support a partner or parent:

  • The wage threshold for those supporting a partner will increase to NZD $26.85 per hour.
  • Income thresholds for sponsors under the Parent Category will now be indexed to a median wage of NZD $33.56 per hour.

These adjustments are based on the latest data from Statistics New Zealand and are intended to ensure that migrant workers have the financial stability required to support their families.


What Do These Changes Mean for You?

Whether you are an employer looking to recruit skilled migrant workers or a migrant considering an AEWV, these reforms will have a direct impact on your visa application, employment terms, and eligibility criteria. It is essential to review how these changes align with your circumstances and plan accordingly.

For detailed guidance on how the new AEWV and wage adjustments might affect your situation, please contact our team at ImmigrationLaw.nz.