Immigration NZ uses the median wage to assess Essential Skills Work Visas. The government has decided this will increase from $25.50 per hour to $27. The introduction of the new rate was deferred last year, but it is expected to come into effect in July.
Any staff paid less than the new rate will be subject to much shorter work visas (6 months) and a stand down period (leave New Zealand after 3 years of employment – although this has been deferred until January 2022).
What should you and your migrant workers do?
1. Consider applying now for the next work visa. Getting in early might mean employees secure another 3 year work visa.
2. Start a conversation early about pay rates. Planning for this increase will avoid drama and disappointment down the track.
3. Take advice from a reputable Licensed Immigration Adviser.