IMPACT – MEDIUM

What is the change? New Zealand is poised to increase income thresholds for Skilled Migrant Resident Visas and Essential Skills Work Visas.

What does the change mean? The salary thresholds will increase by 2% across the board on Feb. 24. The exact amounts vary depending on the type of visa, job category and skill level, as detailed below.

  • Implementation time frame: Feb. 24, 2020.
  • Visas/permits affected: Skilled Migrant Resident Visas, Essential Skills Work Visas.
  • Who is affected: Companies sponsoring foreign nationals on a Skilled Migrant Resident Visa or Essential Skills Work Visa.
  • Next steps: Immigration New Zealand anticipates it will adjust salary thresholds again in November 2020.

Additional information: The new thresholds are based on the country’s median salary of NZ$25.50 per hour or NZ$53,040 per year for a 40-hour work week.


Skilled Migrant Resident Visas (all figures in New Zealand dollars):

Skill Level Current threshold Threshold as of Feb. 24
Skilled employment in an occupation at ANZSCO skill level 1 to 3 $25 or more per hour ($52,000 per year) $25.50 or more per hour ($53,040 per year)
Skilled employment in an occupation at ANZSCO skill levels 4 and 5 $37.50 or more per hour ($78,000 per year) $38.25 or more per hour ($79,560 per year)*
Pay rate to claim bonus points in an application $50 or more per hour ($104,000 per year) $51.00 or more per hour ($106,080 per year)

* Some occupations at ANZSCO skill levels 4 and 5 are treated as an exception. From Feb. 24, the threshold for skilled employment for these occupations will be $25.50 per hour ($53,040 per year) or above

Essential Skills Work Visas (all figures in New Zealand dollars):

Skill Level Current threshold Threshold as of Feb. 24
Mid-skilled employment in an occupation at ANZSCO skill level 1 to 3 $21.25 or more per hour ($44,200 per year) $21.68 or more per hour ($45,094 per year)
Higher-skilled employment, including occupations at ANZSCO skill levels 4 and 5 $37.50 or more per hour ($78,000 per year). $38.25 or more per hour ($79,560 per year)
Lower-skilled employment ANZSCO skills levels 1 to 5 $21.24 or less per hour ($44,179 per year) $21.67 or less per hour ($45,074 per year)
Lower-skilled employment at ANZSCO Levels 4 and 5 $37.49 or less per hour ($77,979 per year) $38.24 or less per hour ($79,539 per year)

Analysis & Comments: Employers should budget for the increase as needed. The new income thresholds affect only applications received by Immigration New Zealand on or after Feb. 24. The changes do not affect current visa holders or (1) Essential Skills Work Visa applications received before Feb. 24 or (2) Skilled Migrant Residence Visas for which the Expression of Interest has been selected before Feb. 24.

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