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On 24 February 2020, the remuneration or pay rate thresholds for the Skilled Migrant Category Resident Visa (SMC) and the Essential Skills Work Visa will increase. Based on the New Zealand median salary and wage rate (which has increased 2% since last year from NZD $25 per hour to NZD $25.50 per hour), the thresholds are updated annually.

The following tables, based on information released by Immigration New Zealand (INZ) on 19 December 2019, set out the changes and the relevant dates.

Hourly rates for SMC applicants, in order to be awarded points for skilled employment:

ANZSCO Level From 24 February 2020

 

Between 26 November 2018 and 23 February 2020
1, 2 or 3 NZD $25.50 or more per hour (NZD $53,040 per year) NZD $25.00 or more per hour (NZD $52,000 per year)
4 or 5 NZD $38.25 or more per hour (NZD $79,560 per year) NZD $37.50 or more per hour (NZD $78,000 per year)
4 or 5 *occupations treated as exceptions (read more about the ANZSCO changes) NZD $25.50 per hour (NZD $53,040 per year)  

 

High Salary Bonus points NZD $51.00 or more per hour (NZD $106,080 per year) NZD $50.00 or more per hour (NZD $104,000 per year)

 

Hourly rates for Essential Skills applicants:

Skill band ANZSCO Level From 24 February 2020

 

Between 26 November 2018 and 23 February 2020
Mid-skilled 1, 2 or 3 NZD $21.68 or more per hour (NZD $45,094 per year) NZD $21.25 or more per hour (NZD $44,200 per year)
Mid-skilled 4 or 5 *occupations treated as exceptions NZD $25.50 per hour (NZD $53,040 per year)  
Higher-skilled any NZD $38.25 or more per hour (NZD $79,560 per year) NZD $37.50 or more per hour (NZD $78,000 per year)
Lower-skilled any NZD $21.67 or less per hour (NZD $45,074 per year), will be lower-skilled NZD $21.24 or less per hour (NZD $44,179 per year)
Lower-skilled 4 or 5 NZD $38.24 or less per hour (NZD $79,539 per year) NZD $37.49 or less per hour (NZD $77,979 per year)

 

All work visa applications received on or after 24 February will be assessed using the new threshold. If your application for an Essential Skills Work Visa is received before 24 February 2020, it will be assessed using the old thresholds. However, if you already hold a visa and are applying for a further visa, the conditions or duration of your next visa could be different.

If your Expression of Interest (EOI) was selected before 24 February 2020 and you were invited to apply after 24 February 2020, the old remuneration thresholds apply when you apply for residence under the Skilled Migrant Category.

To discuss these changes and how they may relate to your personal circumstances, contact Pathways NZ to speak with a licensed immigration adviser.

The Skilled Migrant Category (SMC) is the main residence category and makes up over 50% of New Zealand’s residence programme.  In April the Government announced a number of changes to the SMC and these will take effect from 28 August 2017. Expressions of Interest under the existing policy, the first stage of a SMC application, were stopped on 19 July and from this time, and until the new policy takes effect, it has not been possible to begin a new SMC application.

A key change of the new SMC policy is the introduction of salary thresholds to, in part, determine if employment is “skilled”. These salary thresholds are indexed to the New Zealand median income of $48,859 and will be reviewed every year. Employment roles which are classified as ANZSCO (Australia & New Zealand Standard Classification of Occupations) skill level 1, 2 or 3 roles must have a salary of $48,859 in order to be able to be awarded SMC points. This salary equates to $23.49 per hour for a 40 hour work week.

For all other employment roles which are not at ANZSCO skill level 1,2 or 3 the salary must be $73,299 or $35.24 per hour.

If the employment is for at least 30 hours per week and at, or above, the mentioned hourly rates, then this is acceptable.

There will also be bonus points for applicants who earn over $97,718 per year.

It is expected that INZ will closely investigate those applicants who will have had recent significant pay increases which have resulted in their salary rising to the above thresholds to confirm these increases were genuine and merited.

More SMC points will be available for greater work experience. However this work experience must be assessed as being skilled work experience requiring, most likely, that this experience be consistent with ANZSCO skill level 1,2 or 3 roles. This requirement is expected to prove one of the more contentious and challenging changes as it will significantly disadvantage younger applicants and recent graduates whose work experience is less likely to be assessed as being skilled.

The changes will also result in applicants aged 30-39 years, and those with postgraduate qualifications, to be able to claim more points (than currently).

A number of points criteria from the existing SMC policy will be removed including those relating to close family in New Zealand, points associated with Identified Future Growth Area and for qualifications in an area of absolute skills shortage. The additional points offered for skilled employment outside of Auckland will remain but the points available for New Zealand work experience will be limited to 12 months only.

INZ will need to allow some time, after 28 August, for applicants who have EOIs currently sitting in the EOI pool to review and edit their EOIs according to the policy changes and for new EOIs to be submitted under the new policy. For this reason we do not expect to see the next EOI selection draw until at least 6 September and probably 13 September. While applicants only need to claim 100 points for their EOI to be submitted into the pool the passmark has been retained at 160 points since October 2016. It is expected the Government may initially keep this same passmark and wait and see the level of EOIs which are able to be selected. There will be a build up of EOIs due to the 2 month closure and due to the group of applicants who are immediately eligible under the new points criteria, however the expectation is that the passmark will need to reduce from 160 points in the future in order for the residence programme target to be met.

It is always highly recommended professional advice is obtained from a licensed immigration adviser to best determine how these or any other policy changes may affect a person’s current immigration situation and future visa pathways.

Significant and wide ranging changes to the skilled migrant category (SMC) have been announced and are due to become effective from August.

The NZ Government has announced a range of changes for what it says are “designed to better manage immigration and improve the labour market contribution of temporary and permanent migration.”

Two wage thresholds are being introduced for SMC residence applicants which will be used to determine whether employment is skilled for the purpose of granting points for any employment role. An equally significant change is that points for work experience will be increased but only work experience which is assessed as “skilled” can be relied upon. SMC points for age will increase for applicants aged 30-39 as the Government changes its focus from younger, recently graduated, applicants, to those who have more work experience and who can contribute more quickly and constructively to the workforce. Points will no longer be available for qualifications in areas of absolute skills shortage, future growth areas and for having close family living in New Zealand.

Those who will benefit from these changes include people:

  • Whose jobs are not currently recognised as being skilled and cannot currently rely on these jobs for a SMC residence application. The proposed changes will allow these jobs to be assessed as being skilled if they are paid at or above $73,299 per year (or $35.24 per hour).
  • Whose income is $97,719 per year (or $46.98 per hour) will be eligible for 20 bonus points.
  • Who are aged from 30 to 39 will be awarded 30 points for their age
  • Who have longer work experience and this is experience is in skilled roles
  • Who have recognised higher level qualifications at level 9 or 10 (Master’s degrees or Doctorates) who will be awarded 70 points.

Who will be disadvantaged by the policy changes?

  • People whose jobs are currently considered skilled but who are paid less than $48,859 per year (or $23.49 per hour) will not be able to claim points for skilled employment. This new wage threshold will affect many occupations but particularly Restaurant Managers, Chefs, Retail Managers and ICT Technicians which are the most popular occupations under the current SMC policy.
  • Younger people and recent graduates will be disadvantaged as they will unlikely be able to claim points for skilled work experience

It has yet to be confirmed but it is expected that the proposed changes will be introduced in mid August 2017. The last Expression of Interest (EOI) selection draw may therefore be on the 2nd or the 16th of August. It is our understanding that EOIs selected before the changes are implemented will have their residence applications processed under the current SMC policy. NB: an EOI cannot proceed until the principal applicant has met the English language requirement.

Anyone who is considering a SMC residence application should urgently seek professional advice from a Pathways Licensed Immigration Adviser to determine if they are eligible to apply for residence now and before the proposed policy changes are introduced.