Key Update for Recognised Seasonal Employers (RSEs)
As of 18 August 2025, Recognised Seasonal Employers (RSE) in New Zealand have been permitted to increase weekly accommodation costs for workers by up to 2.5%. This adjustment applies to both rent and utility charges, reflecting the rising costs of living and ensuring fairness for both employers and workers.
The updated rate is based on the March 2025 annual Consumer Price Index (CPI) increase and serves as an interim measure while a permanent policy is being developed in collaboration with industry and Pacific stakeholders.
What the 2.5% Increase Means for Employers and Workers
- Applies to all new Agreement to Recruit (ATR) approvals issued on or after 18 August 2025.
- Does not affect ATRs approved before 18 August 2025. Existing agreements remain at previous rates.
- Employers with ATR applications submitted before 18 August but still pending approval can now submit amended accommodation deduction forms to include the 2.5% increase.
All accommodation deductions must remain:
- Actual: Reflecting real costs incurred.
- Reasonable: Fair and proportionate to market conditions.
- Verifiable: Supported by clear documentation and evidence.
Previous Temporary Increase Ending Soon
The temporary accommodation increase introduced in September 2024 will expire on 1 September 2025. This recent adjustment replaces that temporary measure and aligns with ongoing government efforts to maintain fair conditions for RSE workers while supporting employer compliance.
Why This Change Matters for the RSE Scheme?
The Recognised Seasonal Employer scheme remains vital for New Zealand’s horticulture and viticulture industries, providing essential labour from Pacific nations. Ensuring fair accommodation practices protects workers’ well-being and strengthens employer relationships.
This 2.5% increase, now in effect, acknowledges rising operational costs while balancing the rights of workers. It is a temporary step toward a long-term, sustainable solution for accommodation costs under the RSE scheme.
What Should Employers Do Next?
- Review ATR Approvals: Identify which ATRs qualify for the new rate.
- Update Documentation: Submit amended forms for pending ATRs if necessary.
- Ensure Compliance: Maintain transparency and documentation for all deductions.
- Stay Informed: MBIE will announce the permanent accommodation cost approach after further consultation with industry and Pacific representatives.
Immigration Chambers Assistance: Expert Guidance for RSE Employers
Managing compliance under the RSE scheme can be challenging, especially with frequent policy updates. At Immigration Chambers, we assist employers with ATR submissions, accommodation compliance checks, and legal advice to ensure your business meets all immigration requirements without delays or penalties.
Book your consultation with our Licensed Immigration Advisers today and stay fully compliant under the RSE scheme. Contact us now to get expert guidance tailored to your needs!
Key Points to Remember
- 2.5% increase effective since 18 August 2025 for new ATR approvals.
- Existing ATRs remain unchanged.
- Temporary 2024 increase ends 1 September 2025.
- Accommodation deductions must be actual, reasonable, and verifiable.
- Permanent policy under development.
FAQs
1. What is the new RSE accommodation cost increase in 2025?
As of 18 August 2025, RSE employers can increase weekly accommodation charges by up to 2.5%, covering rent and utilities.
2. Does the 2.5% increase apply to all ATRs?
No. It only applies to ATRs approved on or after 18 August 2025. ATRs approved before this date remain at the old rate.
3. What happens if my ATR is still pending approval?
If your ATR was submitted before 18 August but is pending, you can submit amended accommodation deduction forms to include the 2.5% increase.
4. When does the temporary accommodation increase end?
The temporary increase introduced in September 2024 will end on 1 September 2025.
5. Why was the 2.5% increase introduced?
The increase reflects the March 2025 CPI adjustment and addresses rising accommodation costs while a permanent policy is developed.
6. Can employers charge more than 2.5% extra?
No. The increase is capped at 2.5% and deductions must remain actual, reasonable, and verifiable.
7. Will there be a permanent accommodation policy?
Yes. MBIE is working with industry and Pacific representatives to develop a long-term solution for accommodation costs.
8. What happens if employers fail to comply with these rules?
Non-compliance may lead to penalties, RSE accreditation issues, and legal consequences.
9. How can RSE employers ensure compliance?
Maintain accurate documentation, submit correct ATR details, and follow MBIE guidelines. Consulting an immigration expert can help.
10. How can Immigration Chambers assist with ATR compliance?
We assist with ATR submissions, policy updates, legal compliance checks, and worker welfare support. Contact us for expert advice.