Impact of the New Median Wage on Employers and Immigrants

The median hourly pay in New Zealand will grow from $27.76 to $29.66 starting on February 27, 2023, according to recent government announcements. It's crucial to know exactly how the new wage will influence you because it's expected to have a big impact on both companies and migrants. Let's examine what this might imply for immigrants and employers in New Zealand.

Impact on Employers

The increased median salary may lead to higher wages for employees who are now making less than the suggested level for New Zealand firms. When calculating employee salaries, employers must also take into consideration any modifications to the Accredited Employer Work Visa NZ (AEWV) and the industries covered by sector agreements. It is crucial to remember that if the wage barrier rises between the time the work check is allowed and the immigrant applies for their visa, they could have to meet a higher wage threshold than what was initially permitted for the job check pay range. This means that when recruiting foreign employees, companies need be aware of any changes to ensure compliance with immigration regulations.

Impact on Migrant

This rise in the median wage may be advantageous for immigrants seeking to settle in New Zealand because it increases their chances of finding employment with companies that pay at or above this level. As a result of these higher earnings, job seekers may receive more competitive pay and have improved job stability. However, it's critical for immigrants to keep an eye out for any adjustments that might be made between the time their job check is authorised and the time they apply for their visa as they might need to reach a higher pay requirement than was previously allowed.

The median wage will vary depending on when the visa application is submitted

Employers who hire migrant workers must make sure they are paid in accordance with the median pay in effect at the time of application. For instance, any applicant for an Accredited Employer work visa submitted before 27 February 2023 must be paid a minimum of $27.76, which is the median wage in the immigration system at the time of application. This is because, if an employer is granted a job check on 1 November 2022, the applicant will need to be paid at least that amount. Employers must raise their offer to $29.66, the new median wage in the immigration system at that time, if the identical visa application is submitted on or after February 27, 2023. To ensure migrant workers are paid fairly for their labour and are not exploited, much thought and planning must be put into both scenarios.

Also Read: Know more about Partnership Based Visa New Zealand

The categories and pathways for resident visas have undergone revisions by the New Zealand government. For the Green List, Highly Paid, Skilled Migrant, and Parent Categories, this includes adopting criteria based on median wage. The median pay will be set in February of each year and will be based on the June rate released by Stats NZ the previous year. Those applying for resident visas will benefit from more clarity and advance notice of any revisions thanks to this unified process. To further assist anyone requesting a resident visa for New Zealand, Stats NZ will introduce a median pay calculating tool beforehand. More people can now qualify for visa eligibility thanks to these improvements, which streamline the application procedure.

Wrapping Up

Depending on where you stand as an employer or migrant worker in New Zealand, the implementation of a new median salary has both positive and bad repercussions. In addition to potentially increasing expenses for companies due to the need to pay higher compensation, it may also result in better adherence to immigration regulations when employing migrant workers. Yet again, migrants must be aware of any potential changes before applying for their visas so they can ensure they meet all criteria for acceptance. For migrants, however, this may result in better work prospects and improved salaries compared to before. All things considered, it's critical that companies and immigrants alike comprehend how these modifications will impact them moving forward so that everyone can take advantage of the new rules when they are implemented.