Changes to the temporary work visa now in place.
The Government has listened to feedback from the industry over their proposed changes to Essential Skills work visas.
Immigration Minister Michael Woodhouse recently confirmed the immigration changes, which have just come into force after a consultation process that resulted in around 170 submissions. The Association strongly advocated on behalf of the industry when meeting with MBIE and Immigration NZ for a lower salary threshold to be set for our industry. We are heartened that the Government has listened. The changes 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. However, the Government has 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 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.
Minister Woodhouse says the new midskilled 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 are being addressed during the 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 also addresses concerns raised by primary industries that the current ANZSCO descriptions lack classifications for some jobs and therefore disadvantage workers whose occupations are classed at a lower-level by default. The changes to temporary work visa conditions come into effect 28th August, alongside the previously announced changes to the Skilled Migrant residence category. We will keep members updated as new information comes through.
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.
$41,538 the new salary threshold for the Essential Skills work visas
New Zealand’s median income level has recently been advised by Statistics New Zealand, thus the adjusted level is likely to be updated to Essential Skills work and Skilled Migrant Category residence visa applications from mid-November 2017 onwards. We will post an update once this is confirmed by Immigration New Zealand/MBIE.