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Friday, December 15, 2017

Skilled Migrant and Essential Skills policy – Changes to remuneration thresholds

Wednesday, 13 December 2017

Remuneration thresholds in Skilled Migrant and Essential Skills policies will be increasing on 15 January 2018.
In August 2017, changes to the Skilled Migrant and Essential Skills policies were implemented, aimed at:
  • ensuring we are attracting migrants who bring the most economic benefits to New Zealand and to improve the skill composition of people gaining residence under the Skilled Migrant Category
  • striking the right balance between ensuring New Zealanders are at the front of the queue for jobs while preserving access to the temporary migrant skills necessary for New Zealand’s continued economic growth. 
The changes included introducing remuneration thresholds to both categories, with the aim of improving the assessment of skill and value to New Zealand.
From 15 January 2018, the following changes will occur in the Skilled Migrant Category:
ThresholdPrior to 15 JanuaryFrom 15 January
Threshold for skilled employment in an occupation at ANZSCO 1-3
$23.49 per hour or above (or the equivalent annual salary)
$24.29 per hour or above (or the equivalent annual salary)
Threshold for skilled employment in an occupation at ANZSCO 4-5, or which is not included in AZNSCO
$35.24 per hour or above (or the equivalent annual salary)
$36.44 per hour or above (or the equivalent annual salary)
Threshold to earn bonus points
$46.98 per hour or above (or the equivalent annual salary)
$48.58 per hour or above (or the equivalent annual salary)

From 15 January 2018, the following changes will occur in Essential Skills work visa category:
ThresholdPrior to 15 JanuaryFrom 15 January
Threshold for mid-skilled employment in an occupation at ANZSCO 1-3
$19.97 per hour or above (or the equivalent annual salary)
$20.65 per hour or above (or the equivalent annual salary)
Threshold for higher skilled employment in any occupation (including those at ANZSCO 4-5)
$35.24 per hour or above (or the equivalent annual salary)
$36.44 per hour or above (or the equivalent annual salary)

Why are these changes occurring now?

The thresholds are indexed against the New Zealand median income. As previously announced, remuneration requirements are to be updated at the end of each calendar year based on New Zealand income data (which is released in September). This year the changes have been delayed until January to give employers and migrants enough time to adjust to the new thresholds.

What if I am a current Essential Skills work visa holder and my job does not meet the new threshold? What if I’m an employer and one of my staff hold a current visa but their wage does not meet the new threshold?

Visas that people already hold will not be affected. Changes to the income thresholds will not affect the duration or conditions of visas that have already been granted.
A new application made on or after 15 January will be assessed against the new threshold. This may mean the conditions or visa duration of the next visa could be different.  For example a chef paid $20 an hour would currently be considered mid-skilled, as the occupation is ANZSCO level 2 and the pay is above the existing threshold of $19.97. However if he applied for a further visa after 15 January he would be considered low skilled, unless his pay increased to above the new threshold of $20.65.

What if I apply or applied for a work visa under Essential Skills before 15 January 2018, but my application is not decided by then?  Will Immigration New Zealand assess my skill level based on the old thresholds or the new ones?

If your application was received by INZ before 15 January 2018, the old thresholds will be used to assess your application and determine your visa application.

If I am an employer who has already advertised and prepared to support an Essential Skills work visa, but the person cannot get his application in before 15 January 2018, what happens then?

If an application is received and accepted after 15 January 2018, the new thresholds will apply, even if (for example) the employment agreement has been signed prior to 15 January 2018.

What happens if I was invited to apply for the Skilled Migrant Category under the old thresholds?

The remuneration thresholds against which you will be assessed are the thresholds in place on the date your expression of interest (EOI) was selected from the Pool, if that selection results in an invitation to apply.  For example, if your EOI was selected on 10 January 2018 and you were invited to apply on 20 January 2018, the old remuneration thresholds will apply, even though you weren’t invited to apply until after the new thresholds were introduced.
Source - https://www.immigration.govt.nz/about-us/media-centre/news-notifications/smc-essential-skills-changes-to-remuneration-thresholds

Essential Skills in Demand List review 2017

Friday, 15 December 2017

The Ministry of Business, Innovation and Employment (MBIE) has completed its annual review of two of the Essential Skills in Demand (ESID) Lists – the Long Term Skill Shortage List (LTSSL) and the Immediate Skill Shortage List (ISSL).

The Ministry regularly reviews the ESID lists to ensure they meet the changing needs of the labour market, and to preserve opportunities for New Zealanders.

If an occupation is on a shortage list, work visa applications for positions in that occupation from suitably qualified and experienced migrants are not subject to an individual labour market test. A labour market test means that an employer must demonstrate that no suitable New Zealanders are available to fill or be trained for each individual position.  The lists help provide certainty for employers and potential migrants, and are a useful indicator to potential migrants of skill shortages in New Zealand.

Long Term Skill Shortage List

The LTSSL identifies occupations that have an absolute (sustained and ongoing) shortage of skilled workers both globally and throughout New Zealand.  Migrants who gain employment in one of these occupations may be granted a LTSSL Work to Residence or an Essential Skills work visa. Migrants applying for residence under the Skilled Migrant Category may gain bonus points towards their application if they have an offer of employment or work experience in an area of absolute skill shortage identified on the LTSSL.
The outcomes of the review of the LTSSL are to:

Remove five occupations

Anaesthetist
Forest Scientist
Pathologist
Petroleum Engineer
Renal Medicine Specialist

Retain two occupations that were included in the review

Chemical Engineer
Materials Engineer
Submissions to add four occupations (Hairdresser, Motorcycle Mechanic, Registered Nurse (Mental Health), and Sports Coach or Instructor) to the LTSSL have been declined.

Immediate Skill Shortage List

The ISSL identifies occupations that have an immediate shortage of skilled workers either throughout New Zealand or in certain regions. Migrants wishing to work in occupations on the ISSL may be granted work visas under Essential Skills instructions if they meet the specified qualifications and/or experience requirements. 
The outcomes of the review of the ISSL are to:

Add 12 occupations

Accountant (General) (a)
Carpenter (b)
Carpenter and Joiner (b)
Fibrous Plasterer (b)
Joiner (b)
Midwife (b)
Motor Mechanic (General) (b)
Panelbeater (b)
Roof Plumber (c)
Roof Tiler (c)
Solid Plasterer (b)
Vehicle Painter (b)
(a) only for the Auckland/Upper North Island, Wellington and Canterbury/Upper South Island regions
(b) for all regions of New Zealand
(c) only for the Auckland/Upper North Island, Waikato/Bay of Plenty, Canterbury/Upper South Island and Otago/Southland regions

Remove five occupations

Dental Technician
Dentist
Medical Laboratory Technician (Phlebotomy and Histology Technicians)
Pharmacy Technician
Poultry Farmer

Retain five occupations that were included in the review

Cardiologist
Ophthalmologist
Metal Casting Trades Worker (Foundry Moulder)
Registered Nurse (Aged Care)
Resident Medical Officer
Submissions to add Hair or Beauty Salon Manager to the ISSL have been declined.

Timing of changes

The ESID List changes will take effect in February 2018.  Further work is currently being carried out to review the requirements which migrants need to satisfy to apply for a work visa using the skill shortage lists. This includes a review of qualifications in association with the New Zealand Qualifications Authority, and some other changes to ensure that the requirements for using the lists are appropriate for the shortages.

Other immigration options

If an occupation is not on a skill shortage list this does not mean that migrants cannot come to New Zealand. Other immigration options are available for employers and prospective migrants. These include:
Essential Skills Work Visa – subject to an employer demonstrating that they have tried to recruit New Zealanders for the position and been unsuccessful
Talent (Accredited Employer) Work Visa – facilitating recruitment of skilled workers from overseas where the salary is at least NZ$55,000 per annum. This option provides a pathway to residence.
Essential Skills - Approval in Principle – where a number of migrants are being sought
Skilled Migrant Category – under which migrants can apply for residence in New Zealand
The Canterbury Skills and Employment Hub can facilitate employment of New Zealanders in Canterbury, and if there are no suitable applicants, can facilitate visa applications for migrant workers. Also, the Canterbury Skill Shortage List contains some occupations in shortage for the Canterbury rebuild (in addition those on the ISSL and LTSSL).

Other matters

The Essential Skills in Demand Lists are reviewed and updated regularly to ensure that the Ministry’s policy is flexible and responsive to changing economic and labour market conditions.  As part of the reviews, information is gathered from submissions made by external stakeholders and this is considered alongside economic, labour market, immigration and other relevant data.  It is important that the lists reflect genuine skill shortages so New Zealanders are not disadvantaged in seeking employment and training. You can test whether an occupation is on any of the shortage lists by using the skill shortage list checker. This provides information and the requirements for each of the lists.
The Ministry expects to commence the next ESID review in April 2018.
 
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