Kia ora,

Changes the Government announced last year to improve the employer-assisted temporary work visa system are coming into effect on 27 July 2020.

We are also adding some occupations to the skill level exception list (Appendix 7) for residence under the Skilled Migrant Category (SMC). 

The combination of ANZSCO and salary to assess skill level is being replaced with a simple remuneration threshold, aligned to the national median wage calculated by Statistics NZ.

Remuneration will be used to determine the following for an Essential Skills work visa application:

• Whether an employer needs to engage with The Ministry of Social Development (MSD) in order to meet the labour market test.
• The maximum duration of the visa.

The way Immigration New Zealand (INZ) calculates pay rates will not change. We will continue to calculate remuneration using an hourly rate. Hours of work are taken as stated in the employment agreement. If employment specifies payment by salary, then the payment per hour is calculated by dividing the annual salary by 52 weeks, followed by the number of hours to be worked each week.  

The ANZSCO occupation will continue to be requested on the Employer Supplementary form as this information plays a very important role for government policy making purposes, such as understanding the makeup of the migrant workforce in New Zealand. It is important that employers continue to choose the ANZSCO code which is the closest match to the job being offered to the migrant worker.

ANZSCO will continue to be used to determine skilled employment as when assessing residence applications under the Skilled Migrant Category. Essential Skills applications which are approved on the basis of remuneration at or above the median wage does not guarantee that the occupation will be considered skilled for the purposes of an SMC application.  

Below the median wage (currently $25.50 per hour)

Employer needs to engage with MSD and provide a Skills Match Report.

At or above the median wage (currently $25.50 per hour)

Employer does not need to engage with MSD to provide a Skills Match Report, however the employer will continue to need to make genuine attempts to hire New Zealanders, including advertising for the role and considering New Zealanders.

Below the median wage

• The maximum duration of each visa is 6 months for the next 18 months (i.e. from 10 July 2020 – 10 January 2022).
• The maximum combined duration of all work visas in jobs paying below the median wage is 3 years.
• After 3 years on work visas in jobs paying below the median wage, the visa holder will be subject to a stand-down period of 12 months.

At or above the median wage

• The maximum duration of each visa is 3 years.
• No maximum combined duration, stand-down is not applicable.

Note that any partners and dependents who are offshore will be subject to the border restrictions currently in place.

All partners and dependents of any Essential Skills work visa holder must meet immigration requirements such as health and character: holding an Essential Skills work visa is not a guarantee that partners and dependents will be granted visas or entry to New Zealand.

Below the median wage

• A migrant can only support partners on visitor visas, not work visas.

However, once the partner of an Essential Skills work visa holder earning below the median wage is in New Zealand on a visitor visa, they can apply for a work visa in their own right.

• A migrant can support visitor or student visas for dependent children subject to meeting the minimum income threshold (currently $43,322.76 per year).

At or above the median wage

• A migrant may be able to support visitor or work visas for partners.
• Support visitor or student visas for dependent children.

We are updating the list of occupations that can be treated as an exception to certain skill level assessments for Skilled Migrant Category residence policy.

This list of occupations is provided in Appendix 7 of the INZ Operational Manual. From 27 July 2020 this list will not be used to assess Essential Skills temporary work applications.

The following occupations will be added from 27 July 2020:

• Aged or Disabled Carer
• Nursing Support Worker
• Driller
• Bicycle Mechanic.

Please note that SMC applications must be assessed against the immigration instructions in place at the time the application is made.

Some applications already received by INZ cannot be assessed against increased skill levels for some occupations in ANZSCO 1.3 (Appendix 7) because the applications were submitted before the changes were made.

If those applications are declined, the applicant has the choice to lodge a further expression of interest, and if invited to apply, then their application would be considered against current instructions.

Any applicant offshore, including family members, will be subject to the border closure and will need to qualify and apply for a border exception.

Are you not doing 5 year visas for higher-skilled Essential Skills visas anymore?

No, with the removal of ANZSCO there is no ‘higher-skilled’ bracket – just below median wage and at or above median wage. 

Why is ANZSCO still required for SMC?

The removal of ANZSCO for Essential Skills is part of the wider changes to employer-assisted work visas that are due to come in mid next year. No changes have been made to SMC at this stage.

When will INZ move to use ANZSCO version 1.3?

The move to ANZSCO version 1.3 will occur before the end of 2020.

What happens if at SMC stage the immigration officer decides the ANZSCO code doesn’t match, despite being accepted at work visa stage?

The ANZSCO assessment at SMC stage is separate from any assessment that may have been undertaken with a previous work visa application. The approval of a temporary work visa does not guarantee that a person will meet the requirements under SMC.

Do partners get work rights?

Only partners of work visa holders who have been approved a visa for work at or above the median wage are eligible for a partnership based work visa.

Partners of work visa holders who have been approved a visa for work below the median wage are only eligible for a partnership based visitor visa.

How do you factor in the free or subsided housing/transport/ equipment I provide to my workers?

Remuneration is calculated to include any accommodation allowance, reasonable deduction for accommodation or the applicable market rental value. This must be agreed in writing and included in the employment agreement. Deductions must be compliant with New Zealand employment law. Further information about deductions from wages included here. 

Information for the agriculture industry is available here.

Under immigration requirements ‘remuneration’ excludes other employment-related allowances such as free or subsidised tools, uniforms or transport.

Will the Ministry of Social Development (MSD) require ANZSCO for their Skills Match Reports (SMRs)?

You can request a Skills Match Report from MSD without providing ANZSCO information. MSD may refer to ANZSCO to check requirements for particular roles.

Will I be required to list this role formally as one of the ANZSCO job titles, or can I call the role anything I like when I advertise, as long as I’m paying the high salary?

The role can be advertised as you wish, however the closest ANZSCO occupation will need to be indicated on the INZ application forms.

Can I apply now for my worker who only has a one year visa, who is getting paid high salary, so they get a new 3 years visa?

Yes current visa holders are able to apply for a new visa (providing all required documents) and will be assessed against all current criteria at the time of lodgement (including an assessment against the current labour market).  There is no guarantee that a new application will be approved based on the fact that they currently hold a visa.