New Changes to AEWV and Median Wages 2025

New Zealand’s Accredited Employer Work Visa (AEWV) is undergoing significant reforms in 2025, impacting both employers and migrant workers. These changes to AEWV aim to increase flexibility, streamline application processes, and align visa policies with the evolving labor market needs. Here is a detailed breakdown of the upcoming modifications and their implications.

Removal of the Median Wage Requirement for AEWV and Specific Purpose Work Visa (SPWV)

Effective March 10, 2025, the mandatory median wage requirement will be eliminated for Accredited Employer Work Visa and SPWV holders. Instead:

Employers will only be required to pay the New Zealand minimum wage (currently NZD $23.15 per hour, increasing to NZD $23.50 per hour on April 1, 2025).
Migrant workers must be compensated at par with their New Zealand counterparts, ensuring fairness and market parity.
Sector Agreements providing wage exemptions will be removed, except for those offering residence pathways.
Jobs previously subject to sector agreement restrictions will now have no imposed caps or visa duration limitations, making hiring more accessible.
Existing AEWV holders must continue receiving wages as per their contractual obligations and visa conditions.

Reduction of Work Experience Requirement for AEWV Applicants

From March 10, 2025, the minimum work experience required for AEWV applicants will be reduced from three years to two years. However:

Employers must ensure that migrants meet this two-year threshold.
Applicants will still need to provide documented proof of experience to qualify.
The change balances the need for skilled workers while minimizing the risk of migrant exploitation.

Modification of Employer Engagement with the Ministry of Social Development (MSD)

The employer requirement to engage with MSD is being simplified. From March 10, 2025:

Employers must make a good faith declaration confirming that they have advertised for low-skilled roles (ANZSCO skill levels 4 and 5) through MSD.
Employers must interview suitable candidates and retain documented evidence of engagement.
INZ may request supporting evidence at any time, ensuring compliance without excessive bureaucratic hurdles.

Extension of AEWV Visa Duration for ANZSCO Level 4 and 5 Roles

AEWV holders under ANZSCO skill levels 4 and 5 will now be eligible for a three-year visa, aligning with the maximum continuous stay policy. This change provides:

Greater job stability for workers.
Less frequent visa renewals, reducing administrative burdens for both employers and migrants.

Increased Income Threshold for Supporting Dependent Children

To ensure financial stability for migrant families, the income threshold to support dependent children will rise to NZD $55,844 per year from March 10, 2025. Key considerations:

This threshold equals 80% of the median wage, aligning with partner work rights.
Existing visa holders and applicants before March 10 will still be assessed under the previous threshold (NZD $43,322.76 per year).
The threshold will increase annually based on updated median wage data.

Recognition of Additional ANZSCO Skill Level 3 Roles

With the transition from ANZSCO to the National Occupation List (NOL), some roles will be reclassified as skill level 3, ensuring fair recognition of skilled workers. From March 10, 2025, the following occupations will be treated as ANZSCO skill level 3:

Cook (351411)
Pet Groomer (361113)
Kennel Hand (361115)
Nanny (421113)
Fitness Instructor (452111)
Scaffolder (821712)
Slaughterer (831212)

Additionally, four other roles will be recognized as ANZSCO skill level 3, provided the job description mandates three years of experience or a Level 4 qualification:

Agricultural and Horticultural Mobile Plant Operator (721111)
Excavator Operator (721214)
Forklift Driver (721311)
Mobile Plant Operators (721999)

Interim Visa Work Rights Expansion

To ensure smoother transitions for AEWV applicants, new interim visa work rights will be introduced in April 2025:

Migrants applying for an AEWV while on any valid work visa or a student visa permitting work will now be granted interim work rights.
Time spent on an interim visa with work rights will count toward:
- The maximum continuous stay period under AEWV.
- The work experience requirement for residence pathways.

Increase in Median Wage for AEWV Partner Sponsorship & Parent Category Sponsorship

Two key wage changes will take effect from February 28, 2025:

AEWV holders supporting a partner must meet the new wage threshold of NZD $26.85 per hour.
Parent Category sponsorship thresholds will be indexed to the updated median wage of NZD $33.56 per hour.
These adjustments ensure that sponsors possess adequate financial means to support dependents.

Impact of These Changes on Employers and Migrant Workers

These reforms introduce greater flexibility in employment conditions while ensuring worker protections. The removal of restrictive wage policies and the extension of visa durations will benefit both employers and migrants, making New Zealand an even more attractive destination for skilled labor.

These policy updates are set to transform the AEWV landscape, making it more adaptable to the needs of businesses while safeguarding migrant workers’ rights. Employers and prospective visa applicants should prepare for these changes in advance to ensure compliance and a seamless transition.

Immigration Chamber’s Assistance

Need help with AEWV applications? Navigating AEWV changes in 2025 can be complex—Immigration Chambers streamlines your application, ensuring compliance and maximizing approval chances. From employer accreditation to visa processing, we provide complete solutions for seamless hiring. Let our expert Immigration Adviser Auckland handle the legalities while you focus on growth.