New Zealand announces changes to improve AEWV system

Two new seasonal visas also coming in late 2025, minister says

New Zealand announces changes to improve AEWV system

The New Zealand government has announced a string of changes coming this March to the country's Accredited Employer Work Visa (AEWV) in a bid to enhance the immigration system.

Among the changes is the removal of the median wage threshold, according to Immigration Minister Erica Stanford.

"The previous government used the median wage as an artificial proxy for skill, which did not work," she said in a statement.

"Instead, it distorted wages and, in some cases, resulted in businesses paying migrant workers more than New Zealanders doing the same job. Other businesses had to increase prices to ensure pay equity across Kiwi and migrant workers."

Other changes coming to the scheme in March include:

  • Reducing the minimum experience requirement for lower-skilled migrants to two years
  • Increasing the visa duration for new applicants in Level 4 to 5 roles from two to three years to align with the maximum continuous stay
  • Extending interim work rights to AEWV applicants who are applying from any work visa type or from a student visa that allows them to work during term time 
  • Amending the labour market test to a declaration-based model 
  • Inflation-adjusting the income threshold for an AEWV holder to support a dependent child from NZ$43,322 to NZ$55,844.

Ahead of these changes, the government said it will reduce the domestic threshold for labour hire employers in certain construction roles from 35 to 15% starting in January 2025.

"These efficiency gains, alongside the changes announced today, will ensure we have the right balance of ensuring New Zealanders are prioritised for job opportunities while providing a more fit-for-purpose and responsive visa when a business needs to employ a migrant," Stanford said.

The Employers and Manufacturers Association (EMA) said it supports the efforts to streamline the AEWV system.

"In particular, it's good to see the removal of the median wage threshold, which has contributed to recent inflation challenges," said Joanna Hall, EMA senior policy adviser, in a statement. "These changes are positive steps, and we look forward to further moves by the government to help employers secure the skilled migrants that will increase the country's economic well-being."

Further immigration changes

Meanwhile, Stanford also announced that Cabinet has agreed in principle to introduce two new seasonal visas that will be implemented in 2025.

"These visas will provide a more nuanced and flexible response to differing needs of businesses in certain sectors and regions. While further design work is underway, the current seasonal subcategory visa will be extended," she said.

She also announced that Immigration NZ will redesign the Job Check step of the AEWV process to allow greater streamlining for low-risk employers.

"It is my expectation [that] processing times improve further as a result," she said.

The government has been taking steps to improve the AEWV system, such as reducing its processing timeframe from 62 days to 14 and doubling Job Check's productivity.

"Our focus remains on attracting more higher-skilled workers while managing migration levels responsibly, so New Zealand has access to the skills we need to grow our economy. These changes will support a smarter, efficient, and predictable immigration system," Stanford said.