Changes relating to the median wage, essential skills work visa and auto extensions to certain visa categories, were announced by the Minister of Immigration on Friday 11th June. These changes impact migrants and their employers alike. These changes are in effect from 19 July 2021, which gives a small window for employers to plan and action steps.

From 19th July 2021 the following applies:

Essential Skills and Median Wage

Essential Skills median wage goes up to $27/hour from the current $25.50/hour for a 3 year visa. Labour market tests still apply.

Visa duration for jobs paid below median wage will go back to being granted for 12 months (preCovid settings). This came into effect from yesterday, 10th June 2021. For the 12 month work visa, labour tests will also include listing the position with Work and Income.

Implementation of stand down periods for below median wage roles has been postponed until July 2022.

While current Essential Skills visas will not be extended, the Minister of Immigration has increased the duration of new Essential Skills visas for those who are paid below the median wage from 6 months to 12 months.

This change applies to all visas granted on and after 10 June 2021, even in cases where the application was made while the instructions still specified a six month duration.

Skilled Migrant Category (SMC)

SMC residence category remains closed to date however the median wage increase will flow to SMC when it opens.

Auto Extensions

Around 10,000 Working Holiday visas and Supplementary Seasonal Employment (SSE) work visas due to expire between 21 June 2021 and 31 December 2021 will be extended for another six months.

These visas will have open work rights allowing work in any sector. Those onshore holding Temporary work Visa will be able to apply for a SSE visa, but these will be restricted to horticulture and viticulture sectors.

Upcoming Accreditation Changes  

The new mandatory accreditation and associated changes to temporary work visas, is a rapidly evolving landscape and many further announcements are expected over the next few months. 

Below are some FAQ’s:

What happens to employers that are currently accredited, come 1st November?

Employers accredited under the current system will need to apply and meet the policy requirements of the new accreditation system, if they want to hire migrants on the new AEWV (Accredited Employer Work Visa)

Why do current Accredited Employers need to reapply under the new scheme?
Because the policy settings are different for the new scheme. Employers accredited under the current system will need to apply and meet the policy requirements of the new accreditation system.

When does INZ start accepting applications for the new accreditation?
The applications open in INZ’s online portal from late September 2021 (exact date awaited). The scheme becomes mandatory for employers wanting to support migrants on a work visa from 1 November 2021.

What happens to employers who have an accreditation application already lodged with INZ?
If you submit a fresh application now before 30 June (cut off date for applying under the current accreditation scheme), the accreditation team will contact you asking if you want to withdraw for a full refund (if no work has commenced on the application) due to the pending changes. Applications that have already been submitted can be withdrawn if an employer decides that they no longer want or need accreditation under the existing policy. However, if employers want to support talent work visas before 31 October 2021, they should not withdraw it and proceed with the application submitted.

What happens to employees of currently accredited employers that may choose not to renew their accreditation?
The existing settings allow a residence visa to be granted to a Talent work visa holder even if their employer did not renew their accreditation. A Talent visa holder’s pathway to residence won’t be jeopardised by the employer not renewing their accreditation. Work to Residence visa holders can apply under Residence from Work instruction for residence from work after 31 October.

When are further details about the new scheme expected?
Further announcements can be expected by end of June/ early July 2021.

What are the Immigration fees for the two new schemes?
The application fees for the new schemes – standard and high volume accreditations are still being worked through and are awaited.

What happens if an employer wants to move from being accredited under Standard scheme to High Volume scheme?
This detail has not been shared by INZ yet.

If you require additional support with your immigration requirements please contact Steve and his team via the details below.

Steve Baker

Phone: 03 353 0680

Mobile: 027 212 5483 

Email:  steve.baker@enterprise.co.nz