Work visa changes for 2020
In two earlier posts, I outlined the changes and timeline for work visa applications in 2020. These changes only apply to work visa applications that are based on job offers. The first real change happens in mid-2020. Employment is either high-paid or low-paid. And this is determined by the hourly rate only. At the moment, a combination of an hourly rate and the ANZSCO skill level of an occupation determines the skill-band of the employment.
In the meantime, there are smaller, but important changes.
Change to hourly rate thresholds
Income thresholds for Essential Skills work visa and the Skilled Migrant Category resident visa are determined by the median income in New Zealand. They are adjusted every year. The new median wage is $53,040.
As of 24 February 2020, the new hourly rate thresholds for Essential Skills work visa are:
- Low-skill band: below $21.68
- Mid-skill band: $21.68 or above
- High-skill band: $38.25
To qualify for a Skilled Migrant Category resident visa, you need to earn an hourly rate of at least $25.50. You can claim bonus points for a high income if your hourly rate is $51.00 or above. You, of course, also need to meet all the other requirements.
ANZSCO
ANZSCO is the Australian and New Zealand Standard Classification of Occupations. In Essential Skills work visa applications the ANZSCO skill level together with the hourly determines the skill-band of employment.
In addition, in a Skilled Migrant Category resident visa application, the ANZSCO skill level of an occupation determines if your occupation is skilled. Only skill level 1, 2 and 3 applications are considered skilled. And only those with skilled employment may apply for residence (if all other requirements are met).
ANZSCO is managed by both the New Zealand and Australian Statistics agencies. They released a new version (1.3) on 5 November 2019. However, Immigration New Zealand has decided that they continue to use version 1.2. The reasons for this are a bit vague and they seem to make a quite simple situation quite complex.
A number of occupations (44), such as Personal Care Worker, Bookkeeper, Teacher’s Aide and Beauty Therapist are skill level 3 (instead of 4) in the new version. These occupations are now on an exemption list. If you have an offer of employment in one of the occupations on the list AND you earn $25 or more ($25.50 from 24 February 2020), the employment will be considered skilled and you are eligible for a 3-year visa. In addition, you may also qualify to apply for a Skilled Migrant Category resident visa.
Some occupations in the new release of ANZSCO, such as Cook, are downgraded from level 3 to level 4, making them unskilled. This does not have any implications until Immigration New Zealand starts to use the new version of ANZSCO.
The new ANZSCO 1.3 version will come into effect mid-2020 when other work visa changes are also introduced.
What do the work visa changes for 2020 mean for you?
If you have a work visa for a skill level 1, 2 or 3 occupation that is expiring soon AND you do not meet the new hourly rate thresholds, you may wish to apply for a new work visa before 24 February 2020. If you don’t, your employment will be assessed as lower-skill and, if granted, the work visa will be for 1 year.
You may be able to apply for a 3-year work visa if you have an occupation that is on the ANZSCO exemption list AND you earn at least $25.00 ($25.50 from 24 February 2020).
Hi there, I am a Herd manager in the South Island and just received a 3 yr work visa. However my job is now classified as lower skilled by INZ. Why is this the case when I used to have mid skilled job in my previous visa for the same position? Can I still bring my family on work and student visa if I am lower skilled now? Thanks in advance
I have a trade certificate in vehicle spray painting. I’m trying to determine if I can secure employment that requires me to have this qualification in a technical field and then if I could still come over on an essential skills visa. I am currently in a technical sales field in South Africa and my trade certificate is essential to my job description as I have to do product demos etc.
Hi Jason,
I imagine if you find a job as a Technical Sales rep for (vehicle) spray paint that your trade certificate is quite handy as personal experience with spray paint will be essential. Whether or not your trade certificate is recognised in NZ is another matter. It may need to be assessed by the NZQA. There usually is quite a strong demand for vehicle spray painters so if you were willing to do that, it may be a way to obtain an Essential Skills Work visa.
With an Essential Skills work visa application it is important to be skilled for the position you are offered. You can be skilled through an in NZ recognised and relevant qualification or through sufficient relevant work experience that you can prove with independently verifiable documents.
Kind regards,
Feija
Hi dear
If anyone want apply for residency under retail manager and pay rate is 51$. Do Anzsco code still apply?
Hi Sing,
Yes, ANZSCO applies for all resident visa applications. You need to show that your job is skilled. If your pay-rate is twice the median wage (currently $51 per hour or more), you can claim 20 points for this, but you have to meet the same requirements as someone that earns $27 per hour, for instance.
Kind regards,
Feija
Hi,
I have studied logistics and supply chain management level 7 in New Zealand. Now I am working as an Inventory controller in kraft heinz and I got more than 25.5 dollar per hour. But my occupation title is in ANZSCO level 4. But I got my job description and it is almost similar to the job description of logistics manager. So can I apply for my SMC resident visa with this.
Thanks
Vishnu
Hi Vishnu,
Probably not. A Logistics Manager is a skill level 1 role and your current role is skill level 4. There is a huge gap between these. Your job description should meet all of the tasks and responsibilities described in ANZSCO. If you are able to obtain a work visa based (or a new contract if you currently on an open work visa) on a Logistics Manager role then you may be able to apply for residency if you meet all other requirements.
The job description ultimately is more important than the job title, but if your current role is classed as skill level 4, you will have a very hard time convincing Immigration that it is actually as skill level 1 role.
Kind regards,
Feija
Hi
I am a graduate in computing level 7 and i am working as a caregiver from last 1.4yrs. if i finish my level 4 qualification and i earn 25.50/hr, will i be able to apply for Permanent residency according to new rules and regulations?
Hi Cary,
Whether or not you can apply for a Skilled Migrant Category resident visa depends on a number of factors:
are you of good character and health?
do you have a full-time skilled job that pays at least $25.50 per hour?
can you claim at least 160 points based on your age, your qualification(s), your work experience and your job offer?
If your job of Caregiver is considered skilled depends on your job description and whether you provide care for people at home, at an aged care facility or a health facility.
Kind regards,
Feija
Am health care worker earning$ 25:50 p/hr do am eligible for residency.
Hi Hardip,
Whether or not you are able to apply depends on a number of factors:
– You need a skilled job (skill level 1, 2 or 3) that is full-time (30 hours per week or more), ongoing and pays at least $25.50 per hour
– You need to be able to claim at least 160 points – points (and bonus points) are awarded for age, job offer (or current employment), qualifications and work experience
– You also need to meet health and character requirements, as well as English language requirements
Based on the information you have provided, I can’t tell if you are eligible for a resident visa.
You are welcome to provide me with more details via the contact form on the website.
Kind regards,
Feija