Understanding Changes to Wage Thresholds and Their Impact on SMC , Work to Residency and Other Categories
- thaku3
- Jul 23
- 4 min read
Based on the official announcements and updates from Immigration New Zealand, several key changes to wage thresholds, indexed to the new median wage, will come into effect on 18 August 2025.
The new median wage, based on the June 2024 data from Statistics New Zealand, will increase to $33.56 per hour, up from the previous rate of $31.61.
Here is an elaboration on how this change will affect the different visa categories and exemptions:
1. Skilled Residence Visas
The updated median wage will directly impact the wage thresholds for Skilled Migrant Category (SMC), Work to Residence, and Straight to Residence visas. This change applies to all new applications submitted on or after 18 August 2025.
General Wage Threshold: The minimum hourly wage for many roles under these pathways will be $33.56.
Points for Income (Skilled Migrant Category): If you are claiming points for income, the new rates will be:
3 points: A job paying at least 1.5 times the median wage, or $50.34 per hour.
4 points: A job paying at least 2 times the median wage, or $67.12 per hour.
6 points: A job paying at least 3 times the median wage, or $100.68 per hour.
Work to Residence: If you are starting your 24 months of work in an eligible Green List role on or after this date, and the role does not have a specific wage threshold, you must be paid at least $33.56 per hour. Some Green List roles have specific pay thresholds (e.g., 115%, 130%, or 150% of the median wage), and these will also be updated to reflect the new $33.56 median wage.
2. Exemptions for Accredited Employer Work Visas (AEWV)
While the AEWV is generally tied to market rates for the specific role, certain exemptions are linked to the median wage multiples.
Exemption from Labour Market Test and Minimum Skills Threshold: Workers earning twice the new median wage ($67.12 per hour) or more may be exempt from the labour market test and minimum skills criteria.
Extended Visa Duration: Workers earning 1.5 times the new median wage ($50.34 per hour) or more may be eligible for a maximum continuous stay of up to 5 years on an AEWV.
3. Varying the Conditions of Essential Skills Work Visas
The wage threshold for varying the conditions of an Essential Skills work visa will also be updated. If a migrant on a pre-AEWV visa wants to change their conditions to access benefits associated with earning at or above the median wage, they will be required to meet the new threshold of $33.56 per hour.
4. Varying the Conditions of Skilled Migrant Category Interim Visas
Skilled Migrant Category interim visas are granted to applicants who have submitted a residence application but whose current work visa is expiring.10 The new median wage of $33.56 per hour will be the updated threshold for these visas, and any conditions related to wage will be assessed against this new rate.11
Note: This update affects new applications submitted on or after 18 August 2025. Applicants who submitted their Expression of Interest (EOI) or visa applications before this date will generally be assessed under the previous wage thresholds.
Based on the official instructions from Immigration New Zealand, "market rate" is a key concept used to ensure fairness and protect the wages and working conditions of New Zealand citizens and residents.
Market Rate
The New Zealand market rate is defined as the rate of pay that would be required to recruit a New Zealand citizen or a residence class visa holder to do equivalent work. The purpose is to ensure that the employment of migrant workers does not undermine local wages or displace New Zealanders from job opportunities.
How it is Assessed by Immigration Officers
Immigration New Zealand officers use a flexible but robust approach to assess if an offered wage meets the market rate. They consider a range of factors and evidence, which may include:
Comparable Work: The typical rate of pay a New Zealand citizen or resident receives for a similar job in the same industry and region.
Collective Agreements: Rates of pay provided by collective agreements for the relevant industry.
Job-Specific Factors: The region of employment, the level of training, and the experience required for the position.
Reliable Sources: Information from credible sources such as salary guides (e.g., Seek Salary Guide, Hays), industry surveys, and other up-to-date salary data.
In cases where the pay rate is clearly at or above the market rate, an officer may approve the job check without extensive scrutiny. However, if the rate appears low, they may request further justification from the employer.
Market Rate vs. Median Wage
It is important to distinguish the market rate from the median wage, as they serve different purposes within the immigration system.
Market Rate: A job-specific rate that reflects the true value of a particular role in a specific location and industry. It is the current primary wage benchmark for the Accredited Employer Work Visa (AEWV).
Median Wage: A national, government-set figure used as a general wage threshold for many residence visas, such as the Skilled Migrant Category and some Green List pathways.
As of March 2025, the median wage is no longer a blanket standard for the AEWV. Instead, employers must prove that the offered salary meets or exceeds the market rate, not just a national average.
Important Rule for Employers: When offering a pay range, the lowest figure in the range must meet or exceed the market rate. Immigration New Zealand does not consider future pay increases to meet the market rate; the rate must be compliant at the time the job check application is submitted.
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