A key change to the Accredited Employer Work Visa process has seen the removal of the minimum median wage requirement, which has now been replaced using the minimum adult wage and market rates.
As with most visa policy changes, there are always unintended consequences. Whilst employers and indeed the adviser industry were keen to see median wages dropped, the roll-out of market rates has created a new level of challenges for employers and other stakeholders.
Understanding the changes, and then how INZ are applying them is going to be crucial for all accredited employers navigating the visa process, particularly as we see things starting to slowly warm up again in the hunt for offshore talent.
Removing the Minimum Median Wage
Over the course of the last few years, the use of wage rates as a proxy for skill were gradually introduced into our visa system. These wage rate thresholds made it easier for INZ to process applications but at the same time created a cycle of wage inflation, particularly as employers jostled to bring over high volumes of staff when our borders opened in 2022.
Fast forward to 2025 and the application of minimum median wage rates became unworkable and so to remedy the situation the current Government has removed them (for Work Visas only at this stage), opting to instead use a market rate remuneration assessment – something we did for decades before median wages were introduced.
Work Visa applications are now required to have a pay rate at or above the minimum adult wage, and then a rate that reflects the market conditions for that role. It makes sense, because the market determines what candidates should be paid, however applying that in a visa application, when you are trying to streamline the process comes with its own complications.
Market Rates – A Blessing and a Curse
INZ is tasked with using various sources to compare an applicant’s proposed salary to the market rate for that role. However, these sources are often limited, don’t always consider regional variations or the specific nature of the business involved, and we are already seeing some applications for Job Checks being contested over whether the rate is indeed within the market range.
INZ currently refers to only a handful of specific sources to guide them on market rates, and some of these are questionable. They can of course take other sources into account; however it is on a case by case basis and typically offers defer to whatever is put in front of them.
Our advice to any and all employers engaging in the Job Check process, under this current set of criteria is to tread carefully. Understand what the market is paying for your role, speak to your recruitment specialist and make sure you are considering all the sources available to guide that salary range. Never assume that INZ will take you word for what a fair market rate might be, particularly if your business is based outside of one of the main centres (regional variations can be more complex).
I predict that, in time, the assessment of market rates will settle down somewhat with INZ taking a more balanced and sensible approach. In the meantime, employers need to do a little extra homework to ensure their proposed remuneration is going to meet INZ’s market rate assessment.
About the Author
Paul Janssen is the Manager of Turner Hopkins Services, a specialist New Zealand immigration consultancy, based in Takapuna, Auckland. Paul is fully licensed by the Immigration Advisers Authority and has nearly twenty years of industry experience, assisting families, individuals, and businesses to navigate the complexities of the visa system.
Paul and his team work together with their clients, providing realistic and practical advice in a timely and easy to understand manner. Identifying issues at the outset, mapping out the steps involved and managing all aspects of the relocation process.