The several wage levels that have been indexed to the median wage will be updated as well. The Accredited Employer Visa (AEWV), sectors covered by collective agreements, and residence visa categories are among them.
Migrants must meet the wage threshold in effect at the time they submit an application for a visitor visa to enter Australia. This implies that if the wage requirement changes between the completion of the job check and when he or she applies for a visa, he or she may be required to fulfill a higher minimum wage rate than was established in the job check pay range.
For example, the salaries benchmark set for new permanent residents will be adjusted, as well as categories and pathways that include median wage requirements. The Green List and Highly Paid paths, as well as the Skilled Migrant Category and Parent Category, will all be updated.
Previously, wage thresholds were updated regularly, but not always at the same time each year.
Starting in 2023, there will be a standardized process where the median wage is adopted in immigration instructions. These instructions will be published by Stats NZ in February and will be based on the June rate from the year before.
Because of the planned changes, individuals will have plenty of time to prepare. The median wage calculator software will also be updated ahead of time.
Tourism and Hospitality Median Wage Exception
Under the AEWV, many tourism and hospitality occupations have received an exemption to the median wage threshold, with a lower wage limit of $25 per hour until April 2023.
Given the immense hardship that these sectors have faced due to Covid-19, this is a temporary exception.
The Government has decided to end the exemption from the median wage threshold in two stages.
In April 2023 the median wage exception will increase from $25 to $28.18, or 95% of the new median wage.
100% of the median wage will be required to be paid for these roles starting from April 2024.
Our Opinion
The government’s decision to end the tourism and hospitality median wage exception is a good one. These sectors have been hit hard by Covid-19 and need all the help they can get. However, the two-stage approach is reasonable and will give businesses time to adjust.