"Will lowering wage thresholds open doors – or create new pitfalls?"

The impending changes to New Zealand’s Accredited Employer Work Visa (AEWV) framework signal a pivotal shift in immigration strategy. From March 2025, the replacement of the rigid median wage requirement ($33.56 per hour post−February 2025) will be replaced by “market rate” based on specific occupation. The requirement for work experience will be reduced from 3 years to 2 years.

Below, we dissect the practical implications through a legal and commercial lens.

1. Median Wage vs. Market Rate: Cutting Through the Jargon

• Median Wage acts as a statistical “middle point” – half of NZ workers earn more, half earn less. Its simplicity made it a blunt policy tool.
• Market Rate introduces nuance: Pay benchmarks now vary by occupation, location, and seniority. For instance, a retail manager in Auckland may face higher thresholds than one in Dunedin.

Why this matters: Employers gain flexibility but lose predictability. Migrants must now research industry-specific benchmarks rather than rely on a single number.

2. Employer Implications: Strategic Wins vs. Compliance Risks

The changes offer potential relief for sectors struggling with median wage compliance (e.g., hospitality, aged care). However:

• Due diligence intensifies: Employers must prove offered wages align with credible market data (StatsNZ reports? Industry surveys?). Substandard evidence could trigger visa declines or audits.
• Regional disparities emerge: A Queenstown tourism operator’s “market rate” may differ radically from a Palmerston North equivalent, complicating national hiring strategies.

3. Migrant Realities: Lower Barriers, Higher Stakes

While reduced work experience (3→2 years) and sector-specific wages appear migrant-friendly, pitfalls lurk:

• Occupation mapping complexities: Is your role classified as “Marketing Specialist” (ANZSCO 225113) or “Advertising Assistant” (521111)? Miscalculations could derail applications.
• Long-term residency pathways: Lower initial wages might help secure visas but could complicate future Residence Visa applications that still tied to median wage thresholds.

4. The Road Ahead: Proactive Steps for 2025

• For employers:

Audit current workforce against upcoming occupation classifications
Build evidence banks of market rate data for key roles

• For migrants:
  Obtain professional ANZSCO code assessments
  Negotiate employment agreements with clear escalation clauses to meet future residency requirements

Conclusion: A Double-Edged Policy Sword

These reforms reflect a welcome recognition of sectoral realities but replace one set of complexities with another. Success will hinge on meticulous preparation – neither employers nor migrants can afford to navigate this reshaped landscape without expert guidance.

Queen City Law’s immigration team provides tailored AEWV strategy audits and wage benchmarking services. Contact us to future-proof your workforce plans.