Employing overseas chefs and median wage threshold
Immigration Minister Michael Wood announced measures targeted to support the hospitality and tourism sectors and have adjusted the requirement to recruit chefs as requested by industry.
Support is also being provided to the wider tourism and hospitality sector, by extending their exemption to the median wage threshold to give them more time to transition.
“As the world recovers from COVID-19, labour shortages continue to be a persistent ongoing global symptom,” Michael Wood said.
“We are listening closely to the concerns of the hospitality and tourism sectors, and working with them to take practical steps to support them with these challenges where we can, as businesses work towards more productive and resilient ways of operating.
”We agree with the hospitality industry that removing the qualification requirement for chefs to be hired through an Accredited Employer Work Visa (AEWV) will allow those top rated chefs who have trained at the coal face to come to NZ. This will take effect from 18 October.
“The requirement for chefs to hold a New Zealand Certificate of Cookery (Level 4) or equivalent qualification was introduced to reduce risks of wage and job inflation in these roles.
“We have heard the industry’s concerns that this requirement was limiting their options to recruit chefs who do not hold formal qualifications, including some highly skilled or experienced chefs, at a time when labour market conditions are tight.
“Employers hiring chefs will now only be required to meet the median wage and market rate requirement, enabling employers to recruit from a larger pool of migrant chefs.
“We remain focused on reducing the immigration risks of these roles, and officials will be working closely with the industry to develop a system over the next 12-18 months for identifying and assessing skilled chefs who do not hold formal qualifications”, Michael Wood said.
“Many tourism and hospitality businesses will be able to continue hiring migrants on a lower wage threshold with the Government’s temporary median wage exception extended for another year.
“We recognise these sectors have been hit hard by the pandemic and are still recovering from the impacts of ongoing disruption to global travel. To help the industry as it continues to rebuild, Cabinet has decided to extend the transition towards the full median wage for an additional year from 2023 to 2024”, Michael Wood said.
“This will help these sectors manage the short-term impacts they are facing, and ensure a clear path to continue taking the important steps towards paying the median wage in the medium-term.
“In April 2023, employers will be able to pay migrant workers in these roles on an AEWV 95 percent of the median wage or $28.18ph. This will then increase to 100 percent of the median wage in April 2024.
“This move follows other practical changes we have made recently to support key sectors with labour supply, including doubling the number of capped Working Holiday Visa places, and increasing RSE numbers alongside improving conditions”
“In line with existing policy I also confirm today that the new median wage of $29.66 per hour will be adopted into the immigration system on 27 February 2023. All wage thresholds indexed to the median wage, such as sector agreements, will also be updated.
“The Government is focused on moving New Zealand to a higher wage economy, increasing the skill level of migrant workers, and encouraging employers to offer competitive wages and improve career pathways for New Zealanders. This policy is beginning to work, with clear evidence of better pay and conditions in a range of sectors, which will create a more sustainable labour market for everyone
“Updating the median wage thresholds regularly is necessary to ensure the Government is delivering on its immigration rebalance goals and that existing policy settings are maintained in line with market changes”, Michael Wood said.
The current wage threshold will be in place until the new median wage is incorporated in February 2023.
Roles exempt from the AEWV median wage threshold
If you want to hire migrants on the Accredited Employer Work Visa and the role is on this list you can pay less than the median wage.
You must meet a pay threshold
Specific jobs in construction and infrastructure, and tourism and hospitality must pay at least NZD $25 an hour. Specific jobs in the care workforce sector must be paid at least NZD $25.39 an hour.
In April 2023 the median wage exception for tourism and hospitality will increase from $25 to $28.18, or 95% of the new median wage. In April 2024 the exception will end, and these roles will be required to be paid 100% of the median wage.
An AEWV holder paid below the median wage in these cases can hold the AEWV for 2 years before completing a stand-down for 12 consecutive months outside New Zealand, when they can get another AEWV for 2 years.
The migrant worker can get another visa for a job paid above the median wage without having to complete a stand-down period.
From 31 October 2022 five sector agreements will begin and the list of roles exempt from the AEWV median wage threshold will be updated.
Accommodation and hospitality managers nec
Aged or disabled carer
Caravan park and camping ground manager
Child or youth residential care assistant
Conference and event organiser
Disabilities services officer
Diving instructor (open water)
Doorperson or Luggage Porter
Fast Food Cook
Food Trades Assistants nec
Gallery or Museum Technician
Hospitality Workers nec
Hotel or Motel Manager
Hotel or Motel Receptionist
Hotel Service Manager
Kaiāwhina (hauora) (Māori health assistant)
Licensed Club Manager
Nursing support worker
Painting trades worker
Personal care assistant
Residential care officer
Travel Agency Manager
Travel Attendants nec
Wall and floor tiler
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Employing overseas chefs and median wage threshold
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