Key Takeaways
• On March 10, 2025, New Zealand removed wage thresholds for Accredited Employer Work Visas, now requiring only the national minimum wage.
• AEWV applicants now need two years of work experience (reduced from three), effective March 10, 2025.
• Family sponsorship income threshold rose to NZD $55,844 annually, a 29% increase, applicable from March 2025.
On March 10, 2025, Immigration New Zealand (INZ) introduced major changes to its Accredited Employer Work Visa (AEWV) program, most notably the removal of wage thresholds. This policy shift had been announced as early as December 2024 and aims to address the needs of businesses in various sectors across New Zealand 🇳🇿 while maintaining fair outcomes for both local and migrant workers. The reform signifies a significant change in the country’s approach to immigration through skilled work visas.
Before March 2025, employers hiring under the AEWV program had to pay skilled migrants at least the New Zealand median wage, which was NZD $31.61 per hour until February 27, 2025. Following the reform, this requirement has been eliminated. The new pay condition now only requires employers to meet the national minimum wage, which, as of April 1, 2025, stands at NZD $23.50 hourly. However, INZ has made it clear that employers cannot exploit this change. They must still pay migrant workers the appropriate market rate for the job, ensuring wages are comparable to what a New Zealand counterpart would earn for the same work. This rule is critical to prevent wage undercutting—a concern often raised in immigration debates.
The implications of this reform extend beyond wages. On the same day, March 10, 2025, INZ lowered the work experience requirement for AEWV applicants from three years to two. This reduced threshold seeks to strike a balance between the need for skilled applicants and making the program more accessible to migrants. From now on, employers must carefully verify the work history of prospective migrants, and applicants need to provide documentation confirming they meet the revised two-year experience requirement.
A noticeable procedural change has also been made regarding engagement with the Ministry of Social Development (MSD). As of March 2025, employers hiring for lower-skilled roles—classed under ANZSCO skill levels 4 and 5—no longer need to undergo a lengthy consultation process. Instead, they can now submit a formal declaration stating they have sought and interviewed any suitable local candidates through MSD. However, employers must retain records of their recruitment process as evidence. This change simplifies hiring for certain job categories while maintaining accountability to ensure local workers are not unjustly overlooked.
Another update impacting lower-skilled visas involves the visa duration. Traditionally capped at two years, the duration for AEWV holders in ANZSCO skill levels 4 and 5 has been extended to three years. This change, effective March 10, 2025, addresses concerns about instability for both employers and workers caused by frequent visa renewals. It brings more job security to temporary migrants while reducing administrative burdens for businesses reliant on lower-skilled workers.
Additionally, the government has raised the income level required for AEWV holders to bring dependent children to New Zealand 🇳🇿. Starting March 2025, workers must earn at least NZD $55,844 annually to sponsor their children—a 29% increase from the previous threshold of NZD $43,322.76. This adjustment, the first since 2019, is intended to ensure migrants can support their families adequately without strain on public resources. While this update may help safeguard the financial stability of migrant families, it also brings challenges, particularly for workers in lower-paying roles.
Another key development impacts interim visas. Beginning April 2025, migrants switching from most other visa categories, including both work and student visas, will have their work rights extended while their AEWV applications are being processed. This ensures applicants can stay employed during transitional periods, reducing uncertainty for both workers and employers. Additionally, the time spent on interim visas will now count toward continuous residency calculations and the work experience needed for residence pathways under the AEWV program. This change helps migrants working toward long-term residency goals in New Zealand 🇳🇿.
The removal of fixed wage thresholds has also led to adjustments to Sector Agreements, which previously allowed exemptions for below-median wage jobs under strict conditions. These agreements have been discontinued for work visa purposes. However, residency pathways under Sector Agreements and their wage conditions remain intact. This means industries previously reliant on wage exemptions, such as aged care and tourism, will need to reassess their workforce plans for visa purposes.
It’s worth noting that these reforms do not affect existing visa conditions or employment agreements. Employers must continue to honor terms for workers already under AEWVs as stipulated in their contracts. Similarly, accredited employers and Recognized Seasonal Employers (RSE), as of January 27, 2025, are no longer required to complete Employment New Zealand’s online training modules. Rather than mandatory training, these employers will now receive links to free online resources that provide guidance on worker rights and employer obligations, streamlining the application process while keeping parties well-informed.
Looking forward, more changes are lined up for implementation later in 2025. In July 2025, INZ will modify the Job Check process to make it simpler and faster for low-risk employers to gain necessary approvals. In November 2025, the AEWV program will also grow to include two new pathways for seasonal workers. The first is a three-year multi-entry visa that will cater to experienced seasonal workers. The second option is a seven-month single-entry visa designed for lower-skilled seasonal workers, expanding opportunities in industries that rely heavily on temporary labor.
The scope of these reforms reflects the government’s broader strategy to make its immigration policies with the AEWV both flexible and practical. By eliminating rigid wage thresholds, minimizing red tape, and enhancing visa terms, New Zealand 🇳🇿 aims to establish a more inclusive system designed to simultaneously meet labor market needs while protecting the interests of local and migrant workers. As outlined in analyses by VisaVerge.com, these reforms are a calculated move to address skill shortages and improve employer satisfaction, particularly in regions where certain sectors have long struggled to find local talent.
For employers, these changes offer tangible benefits. The elimination of the median wage threshold provides greater flexibility to fill roles where the historically high wage requirements were seen as prohibitive. The extension of visa durations for lower-skilled roles allows businesses to focus on operational growth rather than recurring administrative challenges associated with visa renewals. Furthermore, the decision to simplify MSD engagement could result in more streamlined hiring, particularly in industries like hospitality and agriculture.
Migrant workers, too, may find these updates favorable in some ways. The reduced job experience requirement lowers barriers for entering New Zealand 🇳🇿, making it easier for migrants to qualify for employment opportunities. Extended interim visa rights offer security for those transitioning between visas, while time accumulations on these visas now counting toward residency enhances long-term prospects. However, the increased wage threshold for family sponsorship may prove to be a challenging hurdle for workers looking to relocate with dependents.
Despite these obvious benefits, the changes haven’t escaped scrutiny. Critics express concern that eliminating the median wage threshold could enable exploitation if market wage rates are not strictly enforced. Others question whether the increased income requirement for family dependence disproportionately affects lower-wage migrants, potentially making New Zealand 🇳🇿 a less desirable destination for workers in certain sectors. Policymakers appear to be grappling with finding the right balance between attracting migrants and ensuring fairness to all stakeholders in the labor market.
As the changes continue to roll out throughout 2025, businesses, migrant workers, and immigration service providers must stay updated on policy requirements. Individuals impacted by the AEWV updates may wish to consult official resources or seek professional advice to navigate application requirements effectively. Accurate and official details can be found by reviewing the Immigration New Zealand website, where up-to-date information on work visas and other processes is provided.
In summary, the removal of wage thresholds for Accredited Employer Work Visas introduces a new era in skilled immigration for New Zealand 🇳🇿. Paired with reduced job experience requirements, longer visa durations, and simplified processes, these changes hold the potential to significantly impact the country’s labor force and economic structure. Observations over the next year will reveal whether these reforms achieve their intended objectives of balancing employer demands, worker rights, and broader societal outcomes. Meanwhile, carefully monitoring policy developments will be critical for all parties involved in the immigration process.
Learn Today
Accredited Employer Work Visa (AEWV) → A visa program in New Zealand allowing accredited employers to sponsor skilled migrant workers.
Median Wage Threshold → The minimum wage set at the median income level, previously required for hiring skilled migrant workers under certain visas.
ANZSCO Skill Levels → A classification system defining job skill requirements, used to assess visa eligibility in Australia and New Zealand.
Sector Agreements → Immigration agreements allowing specific industries to employ migrants under tailored visa conditions, often with wage exemptions.
Interim Visa → A temporary visa allowing migrants to stay and work in New Zealand while awaiting the outcome of their visa application.
This Article in a Nutshell
New Zealand’s 2025 AEWV reforms, removing wage thresholds and reducing job experience requirements, aim to tackle labor shortages while balancing fairness. With streamlined processes, extended visa durations, and enhanced residency pathways, employers gain flexibility, and migrants see opportunities expand. Yet, higher family sponsorship income thresholds spark debate. Success hinges on vigilant enforcement.
— By VisaVerge.com
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