We are intentionally reframing the language we use, choosing not to label non-citizens as “migrants”, instead we will refer to them as expats [definition – ‘denoting or relating to a person living outside their native country”].
09 March 2026 will see the new median wage at $35.00 per hour, as per Statistics New Zealand. There have been some frenzy and anxiety from expats who will not meet these new thresholds! Here we explain the proposed Wage Thresholds for coming in August 2026.
The purpose is to make the Skilled Migrant Category (SMC) clearer, more practical, and better aligned with workforce realities.
1. Simplifying SMC Wage Assessments
Under current SMC settings [as of today], expats must:
- Be paid at or above the relevant wage threshold when they start employment, and
- Still meet the relevant median wage threshold when they apply for residence.
The Proposed Change
The proposal recommends removing the requirement to meet the median wage threshold at the time of residence application.
Why?
Because wage at application does not necessarily determine whether someone is genuinely skilled. Instead, the proposal suggests:
✔ Expats must maintain at least the same wage rate throughout their required work experience period.
✔ Their pay must not drop below the relevant median wage during that period.
This approach focuses on wage consistency and genuine skill progression — rather than reassessing wage thresholds again at residence stage.
2. Projected Impact on Residence & Work Visa Volumes
These changes are expected to moderately increase residence approvals.
Here’s what that could look like:
a) Who Would Qualify?
The proposed pathways require expats to:
- Already be working in a skilled role in New Zealand
- Be earning either the median wage or 1.1 times the median wage
Estimates are based on the current cohort of expats on the Accredited Employer Work Visa (AEWV).
b) Estimated Increase in Skilled Residence Pathways
Predicting volumes is difficult. Many expats who may qualify under the new settings are still accumulating the required New Zealand work experience.
However, officials estimate:
- A 9–13% increase in expats gaining access to a skilled residence pathway
- Equivalent to approximately 13,000 – 18,800 additional people
- Most likely scenario: around 16,000 additional migrants
These figures remain approximate due to limited eligibility data within the current AEWV population.
c) Offsetting Reductions in Other Visa Categories
Some balancing effects are expected:
- 🔻 Fewer future AEWV applications, as expats remain in their roles and do not need to be replaced.
- 🔻 Reduction in Green List Work to Residence volumes where SMC becomes the more attractive pathway.
- 🔺 A modest increase in student and post-study work visa applications, as clearer residence pathways make New Zealand tertiary study more attractive
Overall, this represents a rebalancing — not an unchecked expansion!
d) Impact on Net Migration
- Most SMC applicants are already onshore (on work or student visas) when they apply.
- Therefore, changes to SMC have limited direct impact on net migration figures.
And employers will still be required to:
- Genuinely test the New Zealand labour market
- Demonstrate no suitable New Zealanders are available before hiring a migrant
What is the Bigger Picture?
The intention behind these policy proposals appears to be:
- Greater stability for skilled expats looking to remain in New Zealand long-term.
- Clearer residence pathways [an addition to the existing residence pathways].
- Better retention of already-integrated expat workers.
- Reduced churn in the temporary visa system
[Disclaimer: this is a “proposal in policy” from Immigration New Zealand and should not entirely be relied upon, until the policy is officially released.]
Feel free to reach out to us with your queries.