The Median Wage Is Gone: What the 2025 AEWV Changes Mean for Workers and Employers
One of the most significant shifts in New Zealand's work visa system took effect on 10 March 2025 — and many migrants and businesses are still catching up. Here is what actually changed, what stayed the same, and what you need to check right now.
By Zealand Immigration Team
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April 2026
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8 min read
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SOURCED FROM IMMIGRATION.GOVT.NZ
For years, the median wage acted as the gatekeeper for New Zealand's Accredited Employer Work Visa (AEWV). Employers could not hire a migrant worker unless they could pay at least NZD $29.66 an hour — no matter what the role, no matter what the region. That requirement is now gone. In its place is a simpler, more flexible standard: the market rate for the job.
The changes came as part of a package of reforms announced by the Government in December 2024 and rolled out in stages across 2025. Immigration New Zealand (INZ) described the reforms as an effort to make the AEWV "more flexible and responsive to the differing needs of businesses in certain sectors and regions." For employers struggling to fill roles in tourism, hospitality, aged care, and construction, this has been genuinely welcome news. For migrants who were previously priced out of job offers they were qualified for, it may open doors that were previously closed.
But the changes are more nuanced than a simple headline suggests. Some wage thresholds remain. Work experience requirements have shifted. Visa durations have changed. And the obligations on employers have not disappeared — they have simply changed form. Here is a clear breakdown of everything that is different.
"The median wage requirement is gone for AEWV, but the market rate requirement is not. Employers must still pay what the role is genuinely worth — INZ will assess this during the migrant's visa application."
What changed on 10 March 2025
The reforms were introduced in phases. The most significant changes for employers and workers came into effect on 10 March 2025. These are the key shifts, sourced directly from INZ's official announcement:
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The general median wage requirement for AEWV was removed. Employers no longer need to pay NZD $29.66/hr — they must pay the market rate for the role, which INZ assesses during the migrant's application.
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The work experience requirement for migrants was reduced from 3 years to 2 years of directly relevant experience.
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Visa duration for ANZSCO Level 4 and 5 roles was extended from 2 years to 3 years, matching the maximum continuous stay for those roles.
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The formal MSD Engagement Check was replaced with a good-faith declaration. Employers of Level 4 and 5 workers must now declare they have genuinely advertised the role and interviewed suitable New Zealand candidates — and retain evidence they can produce if asked.
What does "market rate" actually mean?
INZ assesses the market rate during the migrant's AEWV application. The employer's job offer must match what a New Zealand worker in that role would reasonably expect to be paid. INZ considers published pay data, industry rates, and the specific duties and location of the role. Employers cannot simply offer a token wage and expect it to pass. If INZ determines the offered rate is below market, the application can be declined on that basis.
Importantly, if an employer applied for a job check before 10 March 2025 (when the old median wage still applied), they can now offer a lower wage rate when they invite the migrant to apply — as long as that lower rate meets the market rate standard. They do not need to update the job check application, but INZ will assess the rate when the migrant's own AEWV application comes in.
The employer's new good-faith obligation
Before the changes, employers of Level 4 and 5 workers needed a formal Engagement Check from the Ministry of Social Development (Work and Income) before submitting a job check. That formal step is gone. In its place is a declaration-based system. Employers must now declare, in good faith, that they have advertised the role and genuinely interviewed any New Zealand candidates who appeared suitable.
This sounds simpler — and it is — but it carries real responsibility. INZ can and does request evidence of good-faith engagement at any point. Employers who cannot produce that evidence risk compliance action, including jeopardising their accreditation. The obligations have not gone away; they have shifted from a formal process to a self-certified one that requires equally careful documentation.
Even though the MSD Engagement Check is no longer required as part of the job check application, INZ can still request evidence of your recruitment efforts. Keep records of your advertising, applicant shortlisting, and interview notes. Do not assume declaration-based means record-free.
A real-world example: How Priya's situation changed
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From locked out to employed — Priya's story
Priya is a qualified chef from the Philippines with eight years of experience. In late 2024, she received a job offer from a restaurant in Rotorua paying NZD $26.00 an hour — below the then-median wage of $29.66. Under the old rules, her employer could not sponsor her for an AEWV at that rate, no matter how well-qualified she was.
After 10 March 2025, the picture changed. Her employer checked the market rate for chefs in the Rotorua area and confirmed that NZD $26.00 is within the appropriate range for her role and level. The employer submitted the job check (having genuinely advertised the role and interviewed two local candidates who were not suitable), and Priya was able to apply for her AEWV.
Because Priya's role is ANZSCO Level 3 and she has 8 years of experience (meeting the 2-year New Zealand work experience requirement under the new rules), she can also begin counting toward SMC residence eligibility — provided she earns at least NZD $35.00/hr at the time she applies, which is a key planning consideration for the years ahead.
What about visa duration and maximum continuous stay?
Before March 2025, AEWV holders in Level 4 and 5 roles were granted visas of up to 2 years, with a maximum continuous stay of 3 years. This meant many workers needed to apply for a second AEWV before their maximum stay was reached — a cumbersome process. From 10 March 2025, the visa duration for Level 4 and 5 roles was extended to 3 years, matching the maximum continuous stay for those roles. This means eligible workers now get a single visa for the full duration of their permitted stay, reducing paperwork and uncertainty.
For Level 1–3 workers earning at least 1.5 times the median wage (NZD $52.50/hr as of March 2026), the maximum continuous stay remains 5 years. For all other AEWV holders, the maximum continuous stay is 3 years. Once you reach your maximum continuous stay, you must either change to a different visa type (such as a residence visa) or leave New Zealand for 12 months before re-applying.
Planning ahead: Why your current wage still matters
The removal of the median wage floor is genuinely good news for workers in lower-paying roles who have historically been excluded. But it is worth being honest about what this change does and does not do. It makes it easier to get a foot in the door. It does not, by itself, build a pathway to residence.
If you are on an AEWV and thinking about your long-term future in New Zealand, your wage trajectory matters enormously. The Skilled Migrant Category (SMC) requires you to earn at least the median wage (currently NZD $35.00/hr for skill level 1–3 roles) throughout your required period of New Zealand work experience. Two new SMC pathways open in August 2026 — the Skilled Work Experience pathway and the Trades & Technician pathway — each with their own wage thresholds. Understanding where you need to be in two or three years is essential planning for anyone on a temporary work visa today.
"An AEWV without a residence plan is simply a countdown clock. Understanding your options before your maximum continuous stay expires is one of the most important things a migrant worker can do."
Not sure how these changes apply to you?
Every visa situation is different. Our licensed immigration advisers can review your current visa, your employer's accreditation, and your pathway to residence — and give you a clear picture of where you stand.
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