The Government has announced a number of changes to the Accredited Employer Work Visa (AEWV), which will come into effect from March 2025. Changes to the median wage will also take effect from February 2025. These adjustments are aimed at making the AEWV more flexible and better suited to the diverse needs of businesses across different sectors and regions. Following on from the announcement in December 2024, the Phase 2 changes are as follows. Removing the Median Wage Requirement for AEWV and Specific Purpose Work Visa (SPWV) From 10 March 2025, employers hiring workers under the AEWV or the seasonal Specific Purpose Work Visa (SPWV) will no longer need to meet the median wage requirement. Instead, the only minimum pay threshold will be the New Zealand minimum wage (currently NZD $23.15 per hour, increasing to NZD $23.50 per hour on 1 April 2025). However, employers will still need to ensure that migrant workers are paid the same market rate as their New Zealand counterparts. Alongside this change, Sector Agreements that previously allowed exemptions to the median wage will also be removed. Sector Agreements that include residence pathways will remain, and the wage rates required for residence under those agreements will not change. With the removal of Sector Agreements, roles that were previously covered under them (for below-median-wage positions) will no longer have restrictions such as caps or visa duration limits. Instead, these roles will be treated the same as any other jobs within the same skill level. Current AEWV holders will still need to be paid in line with the terms set out in their employment agreements and visa conditions. Reducing Work Experience Requirements for Migrants From 10 March 2025, the required work experience for migrants applying for the AEWV will reduce from 3 years to 2 years. Employers will still need to check that applicants meet this requirement, and workers will need to provide evidence to support their work experience claims. This change aims to make it easier for skilled migrants to access work in New Zealand while ensuring they have enough experience to reduce the risk of exploitation. Changes to MSD Engagement Requirements for Employers From 10 March 2025, the requirement for employers to engage with the Ministry of Social Development (MSD) when hiring for lower-skilled roles (ANZSCO skill levels 4 and 5) will change to a declaration-based process. Employers will need to declare that they have advertised these roles with MSD and interviewed any suitable candidates. They must also retain evidence of this process, as Immigration New Zealand may request to see it. This change aligns with recruitment practices many employers already follow when searching for local talent. Extending Visa Duration for ANZSCO Level 4 and 5 Roles From 10 March 2025, new AEWVs for ANZSCO Level 4 and 5 roles will have a maximum duration of 3 years. This aligns with the current maximum continuous stay allowed for AEWV holders across multiple visa renewals. Increasing the Income Threshold for Supporting Dependent Children From 10 March 2025, the income threshold required to support dependent children will increase from NZD $43,322.76 per year to NZD $55,844 per year. This new threshold is set at 80% of the median wage and reflects the annual income for a 40-hour work week. This threshold will update annually in line with changes to the median wage. However, families with children who already hold visas (or who have applied for visas before 10 March) will continue to have the previous threshold applied. This ensures that children already in New Zealand are not disadvantaged if their parent cannot meet the new threshold. Recognition of Higher ANZSCO Skill Levels With Immigration New Zealand transitioning from ANZSCO to the National Occupation List (NOL), some roles have shifted in classification. To avoid disadvantaging applicants, from 10 March 2025, certain occupations will be treated as ANZSCO skill level 3, to match their classification in the NOL. These roles include: Cook Pet groomer Kennel hand Nanny Fitness instructor Scaffolder Slaughterer In addition, the following roles will also be recognised as ANZSCO skill level 3 if the employer specifies that the role requires 3 years of work experience or a Level 4 qualification as part of the job check process: Agricultural and horticultural mobile plant operator Excavator operator Forklift driver Mobile plant operators (not elsewhere classified) Changes to Interim Visa Work Rights Further changes will come into effect in April 2025 regarding work rights for people on interim visas while they wait for the outcome of an AEWV application. These changes will: Allow applicants to work on an interim visa if they apply while holding any work visa, or from a student visa that permits work during term time. Enable time spent on an interim visa that allows work to count towards a migrant’s total continuous stay under the AEWV, as well as towards gaining the work experience needed for work-to-residence pathways. Upcoming Changes to the Median Wage From 28 February 2025, AEWV holders who want to support a partner will need to meet the new wage threshold of NZD $26.85 per hour. At the same time, the income thresholds for Parent Category sponsors will also be updated to match the new median wage of NZD $33.56 per hour. These adjustments are based on Statistics New Zealand’s data for median hourly earnings from the June 2024 quarter, ensuring sponsors have the financial means to support their partner or parent. The upcoming changes to the AEWV, starting from 10 March 2025, will affect both employers hiring migrants and workers applying for visas. If you’re an employer, it’s important to understand your new obligations, especially around wages, work experience, and MSD engagement. If you’re a migrant worker, you’ll want to check that you meet the new experience and income thresholds. If you have any questions about how these changes might affect you or your business, feel free to get in touch with us for advice. Read the full announcement here.