ARTICLE
3 January 2025

Accredited Employer Work Visa Improvements Forthcoming

Progressively throughout 2025, the New Zealand government will remove the median wage threshold, reduce experience requirements, introduce new seasonal visa pathways...
New Zealand Immigration

At a Glance

  • Progressively throughout 2025, the New Zealand government will remove the median wage threshold, reduce experience requirements, introduce new seasonal visa pathways, and redesign the Job Check process of the Accredited Employer Work Visa (AEWV) program.
  • These changes are expected to reduce the administrative burdens of AEWV applicants and address the labor shortages in New Zealand.

The situation

The New Zealand government will implement key changes to the Accredited Employer Work Visa (AEWV) program to address labor shortages and support economic growth.

A closer look

DETAILS IMPACT

Key changes effective January 27, 2025:

  • Online module requirements removed. Completing the Employment New Zealand online module will no longer be required (these trainings help employers and employees learn about their rights). Instead, employers and workers will receive links to key employment rights and obligations during the immigration process.
  • Lower local construction worker threshold. The domestic workforce threshold for certain construction roles will drop from 35% to 15%, facilitating recruitment for employers in this sector.
  • The removal of the mandatory Employment New Zealand online module reduces administrative burdens for employers and foreign workers while ensuring that both remain informed about employment rights and obligations in New Zealand.
  • Lowering the domestic workforce threshold for certain construction roles makes it easier for employers to justify hiring foreign workers in these roles. This opens up more job opportunities for foreign applicants in the construction sector.

Key changes effective March 1, 2025:

  • Relaxed labor market test rules.
    • Removal of the wage threshold requirement. Wage thresholds for all AEWV roles will be removed for all employees, but employers will still need to advertise and offer the market rate for roles based on location. This will not impact employment agreements already signed as of March 1, 2025.
    • Easier process for ANZCSO level 4/5 employees. Employers hiring for Australian and New Zealand Standard Classification of Occupations (ANZSCO) Level 4 or 5 roles will only need to declare they have advertised and interviewed local candidates in good faith and will no longer need to engage in the process of having Work and Income (a service of the Ministry of Social Development) assess the local labor market to determine if there are suitable candidates. Posting the advertisement for 21 days will still be required.
  • Relaxed experience requirements. The required experience for foreign nationals will decrease from three to two years.
  • Increased visa duration for lower-skilled roles. AEWV holders in ANZSCO Levels 4 or 5 roles will receive visas valid for three years, up from two years. This increased duration aligns with the total allowable stay in New Zealand for these AEWV holders.
  • New earning threshold for those with dependents. Foreign nationals holding AEWVs must earn at least NZD 55,844 (up from NZD 43,322.76) annually to sponsor children, a threshold unchanged since 2019.
  • The removal of the median wage threshold reduces barriers to entry, allowing more foreign applicants to qualify for AEWV roles. Applicants will be able to compete based on market rates for their position and location.
  • Lowering the required experience from three to two years enables skilled workers with less experience to qualify for visas, broadening the pool of eligible applicants.
  • AEWV holders in ANZSCO Level 4 or 5 roles will benefit from a longer visa duration, offering stability and reducing the frequency of renewals.
  • The amendment for ANZSCO Level 4 or 5 employees will make the process more efficient, saving employers time and resources.
  • Foreign applicants wishing to bring children must meet the annual income threshold of NZD 55,844. This threshold may pose difficulties for workers in lower-paying industries.

Key changes effective April 1, 2025:

  • Work rights during processing. AEWV applicants transitioning from any work or student visa will be able to work during their visa processing.
  • Foreign nationals transitioning from any work visa or a student visa with work rights will be able to maintain employment while awaiting the processing of their new AEWV application. This provides greater job security during visa transitions.

Background

These reforms create new opportunities for foreign workers by reducing administrative hurdles in the AEWV application process. However, applicants and their employers should carefully assess their qualifications, earning potential, and role-specific market rates to meet the revised criteria.

Looking ahead

Further details on these changes may be provided in early 2025. Fragomen will continue to monitor and report on these developments.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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