Government have listened to the feedback of the industry over their proposed changes to Essential Skills work visas.
Immigration Minister Michael Woodhouse has confirmed the immigration changes which come after a consultation process that resulted in around 170 submissions. The Association’s submission advocated for a lower salary threshold to be set for our industry and we met with MBIE and Immigration NZ on a number of occasions to provide feedback on behalf of the industry. We are heartened that Government has listened.
The changes still utilise a salary threshold to help determine skill levels. Those under a certain threshold (originally proposed to be $48,859) will be considered low skilled and will have restrictions.
Government have reduced the remuneration band – addressing the issues that were raised in the consultation process from organisations like the Restaurant Association who vigorously argued against the proposed $48,859 salary threshold. As a result, the lower remuneration band for the new changes will be set at 85 per cent of the New Zealand median income – currently $41,538 a year – instead of $48,859.
A brief summary of some of the Essential Skills visa changes:
- Essential Skills visa holders who earn less than $41,538 will be issued a visa of 12 months for a maximum 3 year duration, after which they will need to spend 12 months outside New Zealand before they can be granted an Essential Skills visa to work in another lower-skilled role. Partners and children of lower-skilled visa holders will need to meet visa conditions in their own right.
- A migrant earning between $41,538 and $73,299 in an occupation classified as ANZSCO Level 1 – 3 will be considered mid-skilled and will be able to gain a visa for up to 3 years at a time and there will be no restriction on the number of times they will be able to reapply. Migrants earning within this band will also be able to support visa applications for their partners and children.
- Those earning over $73,299 a year will automatically be considered higher-skilled, regardless of their occupation.
Minister Woodhouse says the new mid-skilled remuneration band recognises the fact that these workers are filling genuine skill shortages and are more likely to progress with further skills acquisition or work experience.
Other issues highlighted during consultation will also be addressed during a second phase of the review of temporary migration settings. These include developing a framework for further targeting of immigration settings by sectors and regions, developing proposals to incentivise and reward good employer behaviour, and ensuring that seasonal work visas reflect seasonal work.
Phase Two will also address concerns raised by primary industries that the current ANZSCO lacks classifications for some jobs and therefore disadvantages workers whose occupations are classed at a lower-level by default.
The changes to temporary work visa conditions will be introduced on 28 August, alongside the previously announced changes to the Skilled Migrant residence category. We will keep members updated as new information comes through.