November 2018 remuneration thresholds revised for Skilled Migrant and Essential Skills categories

Policy effect

From 26 November 2018, INZ increased the remuneration thresholds used in the Skilled Migrant Category (SMC) and Essential Skills employment assessment. For SMC, the ANZSCO skill-level 1–3 skilled-employment threshold rose from NZ$24.29 to NZ$25.00 an hour, and the skill-level 4–5 or non-ANZSCO threshold from NZ$36.44 to NZ$37.50. The threshold for 20 high-remuneration bonus points rose from NZ$48.58 to NZ$50.00. For Essential Skills, the new bands were higher-skilled at NZ$37.50 or more regardless of ANZSCO level; mid-skilled at NZ$21.25–37.49 inclusive for levels 1–3; and lower-skilled below NZ$21.25 regardless of level, or below NZ$37.50 for levels 4–5. The preceding Essential Skills instructions used NZ$20.65 as the lower threshold, mid-skilled NZ$20.65–36.43 inclusive for levels 1–3, and higher-skilled remuneration of NZ$36.44 or more. Hourly rates are calculated from annual salary by dividing by 52 and weekly hours; the maximum hours are used where a range is supplied. Both sets of instructions retain the requirement that each hour must be paid at or above the relevant threshold. The SMC per-activity exception remains: a worker outside ANZSCO levels 1–3 with a lower contractual hourly rate can meet the NZ$37.50 threshold through qualifying per-activity pay, supported by at least two prior years in the same occupation in New Zealand averaging at least that hourly amount and 30 hours a week in each year. Time-based, commission, incentive/productivity and piece-rate payments do not qualify for that exception. Remuneration includes qualifying agreed deductions and accommodation value or allowance, but excludes other employment allowances and performance-dependent bonuses. These are remuneration-assessment changes within the existing categories, not new visa routes.

Conditions and exceptions

Validated condition or limit: For SMC, the ANZSCO skill-level 1–3 skilled-employment threshold rose from NZ$24.29 to NZ$25.00 an hour, and the skill-level 4–5 or non-ANZSCO threshold from NZ$36.44 to NZ$37.50.; The threshold for 20 high-remuneration bonus points rose from NZ$48.58 to NZ$50.00.; The preceding Essential Skills instructions used NZ$20.65 as the lower threshold, mid-skilled NZ$20.65–36.43 inclusive for levels 1–3, and higher-skilled remuneration of NZ$36.44 or more.; the maximum hours are used where a range is supplied.; Both sets of instructions retain the requirement that each hour must be paid at or above the relevant threshold.; The SMC per-activity exception remains: a worker outside ANZSCO levels 1–3 with a lower contractual hourly rate can meet the NZ$37.50 threshold through qualifying per-activity pay, supported by at least two prior years in the same occupation in New Zealand averaging at…

Official source excerpt

Quoted verbatim from the official source below. Ellipses indicate omitted text.

9 November 2018 Immigration New Zealand Instructions: Amendment Circular No. 2018/11 To: All Manual Holders Amendments to the Immigration New Zealand Operational Manual Introduction This circular outlines changes to the immigration instructions. A copy of the amended instructions is attached. All immigration officers dealing with immigration applications should read the amendments and operate in accordance with the amended instructions on and after 26 November 2018. Note The amendments described in this circular will be published in the Immigration New Zealand Operational Manual in due course. Any enquiries about these amendments should be directed to the Immigration Contact Centre on 0508 558 855. Summary of contents This amendment circular details changes to the Immigration New Zealand immigration instructions, and is set out as follows:  The Description of changes section contains a summary of the changes to immigration instructions.  Appendix 1 contains amended Residence instructions.  Appendix 2 contains amended Temporary Entry instructions.  Appendix 3 contains amended Residence and Temporary Entry instructions.  Appendix 4 contains rescinded instructions. All changes are effective on and after 26 November 2018. Additions to the immigration instructions have been highlighted for ease of reference. Deletions have not been highlighted. Page | 1 Description of changes Changes to post-study work rights WD Post-Study work instructions WD1 Objective WD2 Lodging an application under Post-Study work visa instructions WD3 Requirements for Post-Study work visas WD3.1 Determining and granting a Post-Study work visa WD3.5 Transitional requirements WF4.1 Who is eligible for a Special Work visa Changes to post-study work rights have been made to ensure post-study immigration pathways for international students are fit-for-purpose and to reduce the likelihood of exploitation, while minimising losses of genuine students. The changes are as follows:  The Employer-Assisted Post-Study work visa has been removed.  A three-year post-study open work visa is available for bachelor’s degree or above qualifications.  A one-year post-study open work visa is available for students studying New Zealand Qualification Framework level 4 to 6 and non-degree level 7 qualifications, with an additional year available for Graduate Diploma students whose qualification and work is needed for registration with a professional or trade body.  A time-bound, two-year post-study open work visa is available for students studying level 4 to 6 and non-degree level 7 qualifications outside Auckland (study must be completed by the end of 2021). Transitional provisions To ensure no current tertiary students and post-study work visa holders are disadvantaged by the changes, the following transitional provisions have also been introduced:  Students who held a student visa or were in the process of applying for a student visa to study towards an eligible qualification as at 8 … will be able to apply for: o a three-year post-study open work visa on completion of their qualification(s) o a two-year post study open work visa if they have previously held a one year open post study work visa, on completion of their qualification(s)  Holders of a one year post-study work visa will be eligible to apply for a further two-year open post-study work visa.  Holders of a Post-Study Work Visa-Employer Assisted can apply to vary their visa conditions to remove the occupation, employer and location. Work visa eligibility for partners of students People studying level 8 qualifications will need to study a qualification listed in an area on the Long Term Skills Shortage List to be eligible to support their partner for an open work visa. Page | 2 Updates to the remuneration threshold values for Essential Skills and Skilled Migrant Category visas WK3.5 Acceptable Employment SM1.10 Points for employability and capacity building factors SM6.10 Skilled Employment SM6.20 Calculating remuneration SM6.60 Bonus points for high remuneration The Essential Skills work visa and Skilled Migrant Category resident visa remuneration thresholds have been updated. These thresholds are updated annually. The new thresholds are based on the New Zealand median salary and wage rate of $25 per hour (up 2.9% from last year), equivalent to $52,000 per annum for a 40 hour per week job. The thresholds are:  Skilled Migrant Category o The threshold for gaining skilled employment points will be $25 per hour for jobs at ANZSCO skill level 1, 2, or 3, and $37.50 per hour for jobs at skill level 4 or 5. o The threshold for bonus points for high remuneration will be $50 per hour.  Essential Skills o The mid-skilled remuneration threshold will be $21.25 per hour for jobs at ANZSCO skill level 1, 2, or 3, and or $37.50 per hour for ANZSCO skill level 4 or 5 roles. o The high-skilled remuneration threshold will be $37.50 per hour. Other minor changes Remove references to departure cards Y2.5 Passenger responsibilities on departure Y2.15 Who is exempt from presenting an arrival card Clarify that refugees, refugee claimants and protected people exempt from application fees R2.60 Payment of the fee and immigration levy S4.20 Refugee Quota Family Reunification Category E4.60 Payment of the fee and immigration levy V3.90 Visitor visas for refugee or protection status claimants WI6.5 Who is not normally eligible for a special work visa WI6.10 Making an application L6.1 Limited visas for some refugee or protection status claimants, refugees or protected people Refer to Robert Mugabe in instructions as ‘former’ President of Zimbabwe following his removal as Zimbabwe President in 2017 R5.100 Ban on the grant of residence class visas to certain individuals and classes of individuals E2.55 Restriction on the grant of visas, to Robert Mugabe, former President of Zimbabwe, and his wife Update references to the new Customs and Excise Act 2018 Y4.5 People who must be refused entr …

Review method

Source-based draft with independent Gemini 3.8 Flash verification

Other New Zealand changes operative in 2018

• 2018-01-04DPRK nationals restricted from obtaining New Zealand work authorisations, with contract and exemption safeguards
• 2018-11-26Level 8 student partner work eligibility restricted to shortage qualifications
• 2018-11-26Post-study open work visa conditions and durations revised