In December 2024, the New Zealand Government announced significant reforms to the Accredited Employer Work Visa (AEWV) and Specific Purpose Work Visa (SPWV) to create a more flexible and responsive immigration system. These changes aim to address labour shortages while ensuring fair treatment for both employers and migrant workers.
Starting from 10 March 2025, Immigration New Zealand (INZ) will implement several key updates affecting wage requirements, work experience criteria, visa durations, and hiring processes. Below is a detailed breakdown of how these changes will affect a business/employers and migrant workers.
Impact on Businesses/Employers
- Removal of the Median Wage Requirement
- From 10 March 2025, employers will no longer be required to pay the median wage for AEWV and SPWV roles. Instead, they must pay at least the minimum wage (NZD $23.15 per hour, increasing to NZD $23.50 per hour on 1 April 2025) and ensure that migrant workers receive the market rate aligned with their roles and work location.
- The removal of Sector Agreements means that jobs previously subject to wage exemptions or employment caps will now be treated like any other role of the same skill level.
- Simplified Hiring Process with MSD
The requirement for employers to engage with the Ministry of Social Development (MSD) will be declaration-based instead of requiring an Engagement Check. Employers must advertise roles in skill levels 4 and 5 and interview any suitable New Zealand candidates, but they will only need to keep records as evidence—formal approval from MSD will no longer be required.
- If employers apply for a job check on or after 10 March 2025, they will not need an MSD Engagement Check, even if they engaged with MSD before.
- If a job check application is in progress on 10 March 2025, it will be assessed under the new rules if it benefits the employer.
- Recognition of Higher ANZSCO Skill Levels
The following occupations will be recognised as ANZSCO skill level 3, including:
- Cook (351411)
- Pet groomer (361113)
- Kennel hand (361115)
- Nanny (421113)
- Fitness instructor (452111)
- Scaffolder (821712)
- Slaughterer (831212)
If the employer specifies that the job needs either 3 years of work experience or a level 4 qualification, the following occupations will be recognised as ANZSCO skill level 3:
- Agricultural and horticultural mobile plant operator (721111)
- Excavator operator (721214)
- Forklift driver (721311)
- Mobile plant operators not elsewhere classified (721999)
This change means that businesses hiring for these roles will face fewer advertising and labour market test requirements.
Impact on Employees and Migrant Workers
- Lower Work Experience Requirement
From 10 March 2025, the required work experience for AEWV applicants will reduce from 3 years to 2 years, making it easier for skilled workers to qualify.
- Increased Visa Duration for Lower-Skilled Jobs
AEWV holders in ANZSCO skill levels 4 and 5 will be able to stay in New Zealand for up to 3 years, aligning with the maximum continuous stay allowance.
Impact on Migrant Workers
- English Language Exemptions for Some Roles
Jobs upgraded from ANZSCO skill level 4 to skill level 3 will no longer require English language testing.
- Interim Visa Work Rights Expansion (April 2025)
Migrant workers applying for an AEWV while holding a work visa or a student visa with work rights will now receive interim work rights. Time spent on an interim visa will count towards total AEWV stay duration and work experience for residence pathways.
- Higher Income Threshold for Supporting Dependent Children
The income threshold for AEWV holders to sponsor dependent children will increase from NZD $43,322.76 to NZD $55,844 per year (equivalent to 80% of the median wage). However, children already in New Zealand on a dependent visa will not be affected by this change.
- Median Wage Increase for Partner Sponsorship (February 28, 2025)
- AEWV holders who wish to support a partner’s visa must meet a new wage threshold of NZD $26.85 per hour.
- The income threshold for sponsoring parents under the Parent Category will also be updated to NZD $33.56 per hour.
Message to Applicants
For employers, these updates simplify the hiring process and offer more flexibility in recruitment. However, employers must still ensure the market rate aligns with the role and location. Also, it is important to keep records of engagement with MSD in case INZ conducts a post-accreditation check.
For migrant workers, these changes make it easier to work in New Zealand, but they should plan ahead before reaching the maximum continuous stay period (either 5 or 3 years).
If you need further details on how these changes affect you, your family, or your business, please reach out to our team—we are here to help.
Please note that this article is not a substitute for legal advice and you should contact your lawyer about your specific situation. Please feel free to contact us by email immigration@parryfield.com or by phone 03 348 8480.
